PENNSYLVANIA GAMING CONTROL BOARD RULES AND … · § 461.19. Remote system access § 461.20....

PENNSYLVANIA GAMING CONTROL BOARD

RULES AND REGULATIONS

TITLE 58. RECREATION

CHAPTERS: 401a, 403a, 405a, 407a, 421, 423, 425, 427, 429, 431, 433, 435, 436, 437, 438, 439, 440, 441, 451a,

461, 463, 465, 466, 467, 471a, 481a, 491, 492, 493, 494, 495, 497, 499, 501, 503, 511, 513

THIS DOCUMENT CONTAINS ALL THE TEMPORARY REGULATIONS

ADOPTED BY THE BOARD WHICH WILL EXPIRE ON JULY 5, 2007. TEMPORARY CHAPTERS ARE SHOWN USING THE “COURIER NEW”

FONT. CHAPTERS OF TEMPORARY REGULATIONS THAT HAVE BEEN REPLACED BY PERMANENT REGULATIONS ARE SHOWN USING THE “TIMES NEW ROMAN” FONT AND WILL REMAIN IN EFFECT AFTER

JULY 5, 2007.

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RULES AND REGULATIONS TITLE 58. RECREATION

PENNSYLVANIA GAMING CONTROL BOARD

TABLE OF CONTENTS

Title. 58. Recreation

Part VII. Gaming Control Board

Subpart A. GENERAL PROVISIONS

CHAPTER 401. (RESERVED)

§§ 401.1 – 401.5. (Reserved)

CHAPTER 401a. PRELIMINARY PROVISIONS

§ 401a.1. Purpose.

§ 401a.2. Construction.

§ 401a.3. Definitions.

§ 401a.4. Jurisdiction.


§§ 403.1 – 403.7. (Reserved)

CHAPTER 403a. BOARD OPERATIONS AND ORGANIZATION


§ 403a.2. Participation at meetings and voting.

§ 403a.3. Meetings.

§ 403a.4. Board office hours.

§ 403a.5. Public communication.

§ 403a.6. Delegation of powers.

§ 403a.7. Temporary emergency orders.

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§ 403a.7. Licensed entity representative meetings.


§§ 405.1 – 405.7. (Reserved)

CHAPTER 405a. BUREAU OF INVESTIGATIONS AND ENFORCEMENT

§ 405a.1. General duties and powers.

§ 405a.2. Information.

§ 405a.3. Office of Enforcement Counsel.

§ 405a.4. Procedures.

§ 405a.5. Conduct.

§ 405a.6. Investigatory subpoena.

§ 405a.7. Enforcement action.


§§ 407.1 – 407.3. (Reserved)

CHAPTER 407a. PUBLIC ACCESS TO BOARD FILES

§ 407a.1. Case files.

§ 407a.2. Minutes of public meeting and annual report.

§ 407a.3. Confidential information.

Subpart B. LICENSING, PERMITTING, CERTIFICATION AND REGISTRATION

CHAPTER 421. GENERAL PROVISIONS

§ 421.1. General requirements

§ 421.2. Disqualification criteria

§ 421.3. Investigations; supplementary information

§ 421.4. Presuitability determination

§ 421.5. Monopolization of economic opportunities and control

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CHAPTER 423. APPLICATIONS

§ 423.1. General requirements

§ 423.2. Preliminary submission review

§ 423.3. Application processing

§ 423.4. Deficient applications

§ 423.5. Application withdrawal

§ 423.6. License, permit, registration and certification

issuance and Statement of Conditions

§ 423.7. Restriction on application after denial or revocation

§ 423.8. Recommendations for denial

CHAPTER 425. LICENSED ENTITY REPRESENTATIVES

§ 425.1. Registration

CHAPTER 427. MANUFACTURER LICENSES

§ 427.1. Manufacturer general requirements

§ 427.2. Manufacturer license applications and standards

§ 427.3. Manufacturer license term and renewal

§ 427.4. Alternative manufacturer licensing standards

§ 427.5. Responsibilities of a manufacturer

CHAPTER 429. MANUFACTURER DESIGNEES

§ 429.1. Manufacturer designee general requirements

§ 429.2. Manufacturer designee license applications and

standards

§ 429.3. Additional manufacturer designee licenses

§ 429.4. Manufacturer designee license term and renewal

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§ 429.5. Responsibilities of a manufacturer designee

§ 429.6. Manufacturer designee as agent

§ 429.7. Manufacturer designee agreements

CHAPTER 431. SUPPLIER LICENSES

§ 431.1. Supplier general requirements

§ 431.2. Supplier license applications and standards

§ 431.3. Supplier license term and renewal

§ 431.4. Responsibilities of a supplier

§ 431.5. Supplier log books

CHAPTER 433. PRINCIPAL LICENSES

§ 433.101. Definitions

§ 433.102. Directors and officers

§ 433.103. Individual ownership

§ 433.104. Entity ownership

§ 433.105. Institutional investors

§ 433.106. Lenders and underwriters

§ 433.107. Trusts

§ 433.108. Principal applications

§ 433.109. Principal license term and renewal

CHAPTER 435. EMPLOYEES

§ 435.1. General provisions

§ 435.2. Key employee license

§ 435.3. Occupation permit

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§ 435.4. Key employee license and occupation permit term and

renewal

§ 435.5. Nongaming employee registration

§ 435.6. Board credentials

§ 435.7. Emergency credentials

§ 435.8. Temporary credentials for principals and key employees

§ 435.9. Temporary credentials for nongaming employees

§ 435.10. Loss or destruction of credentials

CHAPTER 436. HORSEMEN’S ORGANIZATIONS


§ 436.2. Horsemen’s organization registration

§ 436.3. Permitting of officers, directors, representatives and

fiduciaries

§ 436.4. Responsibilities of horsemen’s organizations, officers,

directors, representatives and fiduciaries

§ 436.5. Fiduciaries

§ 436.6. Health and pension benefit plans

§ 436.7. Enforcement

CHAPTER 437. VENDOR CERTIFICATION AND REGISTRATION

§ 437.1. General vendor requirements

§ 437.2. Vendor registration applications

§ 437.3. Vendor certification applications

§ 437.4. Principal certification

§ 437.5. Key employee certification

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§ 437.6. Registration and certification term and renewal

§ 437.7. Registered and certified vendor responsibilities

§ 437.8. Approved vendors list; prohibited vendors

§ 437.9. Permission to conduct business prior to certification

or registration

§ 437.10. Emergency vendor

§ 437.11. Slot machine applicants’ and licensees’ duty to investigate

CHAPTER 438. LABOR ORGANIZATIONS


§ 438.2. Labor organization notification

§ 438.3. Permitting of labor organization officers, agents and

principal employees


CHAPTER 439. JUNKET ENTERPRISES


§ 439.2. Junket enterprise license requirements

§ 439.3. Junket enterprise license form

§ 439.4. Junket representatives

§ 439.5. Junket enterprise representative registration

§ 439.6. Junket schedules

§ 439.7. Junket arrival report

§ 439.8. Junket final report

§ 439.9. Monthly junket report

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§ 439.10. Purchase of patron lists

§ 439.11. Junket prohibitions

CHAPTER 440. MANAGEMENT COMPANIES

§ 440.1. Management company license

§ 440.2. Management company as agent

§ 440.3. Management contracts generally

§ 440.4. Required provisions in management contract

Subpart C. SLOT MACHINE LICENSING

CHAPTER 441. SLOT MACHINE LICENSES


§ 441.2. Slot machine application restrictions and deadlines

§ 441.3. Slot machine license application

§ 441.4. Alternative Category 1 licensing standards

§ 441.5. License fee payment bond or letter of credit

requirements

§ 441.6. Public input

§ 441.7. Licensing hearings for slot machine licenses

§ 441.8. Divestiture

§ 441.9. Approval of a slot machine license

§ 441.10. Notification of anticipated or actual changes in

principals or key employees

§ 441.11. Notification of new financial sources

§ 441.12. Agreements

§ 441.13. Board review of agreements and records of agreements

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§ 441.14. Master purchasing and disbursement report

§ 441.15. Slot machine license issuance bond requirement

§ 441.16. Slot machine license term and renewal

§ 441.17. Change in ownership or control of slot machine

licensee and multiple slot machine license prohibition

§ 441.18. Employee status report

§ 441.19. Notice of employee misconduct and offenses

§ 441.20. Slot machine license agreements

§ 441.21. Management contracts

§ 441.22. Category 1 slot machine licensees

§ 441.23. Category 3 slot machine licensees


Subpart D. RECORDKEEPING


§ 451.1. (Reserved)

CHAPTER 451a. RECORDKEEPING REQUIREMENTS

§ 451a.1. Recordkeeping generally.

Subpart E. SLOT MACHINE TESTING, CERTIFICATION AND CONTROL

CHAPTER 461. SLOT MACHINES AND ASSOCIATED EQUIPMENT

§ 461.1. Definitions § 461.2. Protocol requirements

§ 461.3. Testing and approval generally § 461.4. Submission for testing and approval § 461.5. Slot machine conversions

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§ 461.6. Revocations § 461.7. Slot machine minimum design standards § 461.8. Gaming vouchers § 461.9. Coupons § 461.10. Automated gaming voucher and coupon redemption machines § 461.11. Automated gaming voucher and coupon redemption machines: accounting controls § 461.12. Progressive slot machines § 461.13. Wide area progressive systems § 461.14. Slot monitoring systems § 461.15. Casino management systems § 461.16. Player tracking systems § 461.17. External bonusing systems § 461.18. Cashless funds transfer systems § 461.19. Remote system access

§ 461.20. Server supported slot systems § 461.21. Server based slot systems § 461.22. Automated jackpot payout machines § 461.23. Slot machines and associated equipment utilizing alterable storage media § 461.24. Testing and software installation on the live gaming floor

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CHAPTER 463. POSSESSION OF SLOT MACHINES

§ 463.1. Possession of slot machines generally § 463.2. Transportation of slot machines into, within, and out

of the Commonwealth

§ 463.3. Slot machine location § 463.4. Connection to the central computer system § 463.5. Slot machine master list § 463.6. Notice to central computer system CHAPTER 465. ACCOUNTING AND INTERNAL CONTROLS § 465.1. Definitions § 465.2. Accounting records § 465.3. Internal control systems and audit protocols § 465.4. Forms, records and documents § 465.5. Standard financial and statistical reports § 465.6. Annual audit; other reports; suspicious activity and currency transaction reporting § 465.7. Retention, storage and destruction of books, records and documents § 465.8. Complimentary services or items § 465.9. Licensed facility § 465.10. Surveillance system; surveillance department control; surveillance department restrictions § 465.11. Surveillance system recording formats § 465.12. Slot machine licensee’s organization

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§ 465.13. Access badges and temporary access credentials

§ 465.14. Firearms; possession within a licensed facility

§ 465.15. Security department minimum staffing

§ 465.16. Cashiers’ cage

§ 465.17. Accounting controls for the cashiers’ cage

§ 465.18. Bill validators and slot cash storage boxes

§ 465.19. Transportation of slot cash storage boxes to and from

bill validators; storage

§ 465.20. Acceptance of tips or gratuities from patrons

§ 465.21. Personal check cashing § 465.22. Wire transfers

§ 465.23. Cash equivalents

§ 465.24. Customer deposits

§ 465.25. Count room characteristics

§ 465.26. Counting and recording of slot cash storage boxes

§ 465.27. Jackpot payouts

§ 465.28. Annuity jackpots

§ 465.29. Merchandise jackpots

§ 465.30. Automated teller machines

§ 465.31. Waiver of requirements

CHAPTER 466. SLOT COMPUTER SYSTEMS

§ 466.1. Slot computer systems generally

CHAPTER 467. COMMENCEMENT OF SLOT OPERATIONS

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§ 467.1. Gaming floor plans

§ 467.2. Commencement of slot operations generally

Subpart F. FEES


§§ 471.1 -- § 471.3. (Reserved)

CHAPTER 471a. FILING FEES

§ 471a.1. Fees generally.

§ 471a.2. Schedules of fees.

§ 471a.3. Adjustment of fees.

Subpart G. MINORITY AND WOMEN’S BUSINESS ENTERPRISES


§§ 481.1 –- 481.5. (Reserved)

CHAPTER 481a. DIVERSITY

§ 481a.1. Statement of purpose, policy and applicability.


§ 481a.3. Diversity participation.

§ 481a.4. Establishment of diversity plan required.

§ 481a.5. Report of participation.

§ 481a.6. Diversity audits.

Subpart H. PRACTICE AND PROCEDURE

CHAPTER 491. GENERAL RULES OF PRACTICE

§ 491.1. Office of the Clerk

§ 491.2. Filing generally

§ 491.3. Service by the Board

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CHAPTER 492. HEARINGS AND APPEALS

§ 492.1. Generally


§ 492.3. Office of Hearings and Appeals

§ 492.4. Hearing officers

§ 492.5. Presiding officers

§ 492.6. Hearings generally

§ 492.7. Prehearing and other conferences

§ 492.8. Presentation and effect of stipulations

CHAPTER 493. PLEADINGS

§ 493.1. Generally

§ 493.2. Formal complaints

§ 493.3. Satisfaction of formal complaints

§ 493.4. Petitions generally


§ 493.6. Answers

§ 493.7. Consolidation

§ 493.8. Amendments and withdrawal of pleadings

§ 493.9. Motions generally

§ 493.10. Preliminary motions

§ 493.11. Motions for summary judgment and judgment on the

pleadings

§ 493.12. Discovery

§ 493.13. Intervention

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§ 493.14. Consent agreements

CHAPTER 494. HEARING PROCEDURE

§ 494.1. Generally

§ 494.2. Oral hearings

§ 494.3. Documentary hearings

§ 494.4. Report or recommendation of the presiding officer

§ 494.5. Review

§ 494.6. Reopening of record

§ 494.7. Exceptions

§ 494.8. Rehearing or reconsideration

§ 494.9. Briefs and oral argument

§ 494.10. Reports of Compliance

§ 494.11. Appeals

CHAPTER 495. DOCUMENTARY FILINGS

§ 495.1. Form of documentary filings generally

§ 495.2. Form of documents

§ 495.3. Incorporation by reference

§ 495.4. Single pleading covering more than one matter

§ 495.5. Execution of documents

§ 495.6. Verification

§ 495.7. Number of copies

CHAPTER 497. TIME

§ 497.1. Date of filing

§ 497.2. Computation of time

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§ 497.3. Issuance of Board orders

§ 497.4. Effective dates of Board orders

§ 497.5. Extensions of time and continuances

CHAPTER 499. REPRESENTATION BEFORE THE BOARD

§ 499.1. Appearance in person

§ 499.2. Appearance by attorney

§ 499.3. Other representation prohibited at hearings

§ 499.4. Notice of appearance or withdrawal

§ 499.5. Form of notice of appearance

§ 499.6. Contemptuous conduct

§ 499.7. Suspension and disbarment

Subpart I. COMPLUSIVE AND PROBLEM GAMBLING

CHAPTER 501. COMPULSIVE AND PROBLEM GAMBLING REQUIREMENTS


§ 501.2. Compulsive and problem gambling plan

§ 501.3. Employee training program

§ 501.4. Reports

§ 501.5. Liability

§ 501.6. Signage requirements

§ 501.7. Prohibition on check cashing

CHAPTER 503. SELF EXCLUSION



§ 503.3. Request for self exclusion

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§ 503.4. Self-exclusion list

§ 503.5. Duty of slot machine licensees

§ 503.6. Removal from self-exclusion list

§ 503.7. Exceptions to the prohibition from being on the gaming

floor for individuals on the self-exclusion list

SUBPART J. EXCLUSION

CHAPTER 511. PERSONS REQUIRED TO BE EXCLUDED


§ 511.2. Maintenance and distribution of the exclusion list

§ 511.3. Criteria for exclusion

§ 511.4. Duties of the Bureau

§ 511.5. Placement on the exclusion list

§ 511.6. Demand for hearing on the placement of a person on

the exclusion list

§ 511.7. Board review


§ 511.9. Duties of slot machine licensees

§ 511.10. Petition to remove name from the exclusion list

CHAPTER 513. UNDERAGE GAMING


§ 513.2. Exclusion requirements

§ 513.3. Responsibilities of licensees, permittees, registrants

and certificate holders


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ANNEX A

TITLE 58. RECREATION

PART VII. GAMING CONTROL BOARD

Subpart A. GENERAL PROVISIONS

CHAPTER 401a. PRELIMINARY PROVISIONS

§ 401a.1. Purpose.

The purpose of this part is to facilitate the implementation of the act.

§ 401a.2. Construction.

(a) This part shall be liberally construed to secure the just, speedy and efficient

determination of every action, proceeding or issue presented to which it is applicable.

The Board at any stage of an action, proceeding or issue presented may disregard an

error or defect of procedure which does not affect the substantive rights of the

participants. (b) Subsection (a) supersedes 1 Pa. Code § 31.2 (relating to liberal

construction).


The following words and terms, when used in this part, have the following meanings,

unless the context clearly indicates otherwise:

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Act--The Pennsylvania Race Horse Development and Gaming Act (4 Pa.C.S. §§ 1101--

1904).

Affiliate, affiliate of or person affiliated with--A person that directly or indirectly, through

one or more intermediaries, controls, is controlled by or is under common control with a

specified person.

Applicant--A person, who on his own behalf or on behalf of another, is applying for

permission to engage in an act or activity which is regulated under the act or this part. In cases in

which the applicant is a person other than an individual, the Board will determine the associated

persons whose qualifications are necessary as a precondition to the licensing of the applicant.

Application--A written request for permission to engage in an act or activity which is

regulated under the act or this part.

Approved, approval or approve--The date that an application to the Board is granted

regardless of the pendency of administrative or judicial appeals or other legal action challenging

the decision of the Board.

Arrest--Detaining, holding, or taking into custody by police or other law enforcement

authorities to answer for an alleged commission of an offense.

Associated equipment--Equipment or mechanical, electromechanical or electronic

contrivance, component or machine used in connection with gaming, including the following:

(i) Linking devices which connect to progressive slot machines or slot machines.

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(ii) Replacement parts needed to conduct slot machine gaming.

(iii) Equipment which affects the proper reporting of gross revenue.

(iv) Computerized systems for controlling and monitoring slot machines,

including, the central control computer and devices for weighing or counting money.

BCCIC--The Bureau of Corporate Compliance and Internal Controls of the Board.

BIE or Bureau--The Bureau of Investigations and Enforcement of the Board.

Background investigation--A security, criminal, credit and suitability investigation of a

person as provided for in the act. The investigation must include the status of taxes owed to the

United States and to the Commonwealth and its political subdivisions.

Backside area--

(i) Those areas of the racetrack facility that are not generally accessible to the

public and which include facilities commonly referred to as barns, track kitchens, recreation

halls, backside employee quarters and training tracks, and roadways providing access thereto.

(ii) The term does not include those areas of the racetrack facility which are

generally accessible to the public, including the various buildings commonly referred to as the

grandstand or the racing surfaces, paddock enclosures and walking rings.

Board--The Pennsylvania Gaming Control Board.

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Central control computer--A central site computer controlled by the Department and

accessible by the Board to which all slot machines communicate for the purpose of auditing

capacity, real-time information retrieval of the details of a financial event that occurs in the

operation of a slot machine, including, coin in, coin out, ticket in, ticket out, jackpots, machine

door openings and power failure, and remote machine activation and disabling of slot machines.

Certified vendor--A vendor that holds a vendor certification.

Charge--An indictment, complaint, information, summons or other notice of an alleged

commission of an offense.

Clerk--The Clerk to the Board's Office of Hearings and Appeals.

Collateral agreement--Any contract between a management company or its affiliates,

intermediaries, subsidiaries or holding companies and a slot machine licensee or its affiliates,

intermediaries, subsidiaries or holding companies that is related either directly or indirectly to a

management contract or to any rights, duties or obligations created between a management

company and a slot machine licensee.

Commission or Commissions--The State Horse Racing Commission or the State Harness

Racing Commission, or both, as the context may require.

Compensation--A thing of value, money or a financial benefit conferred on or received

by a person in return for services rendered, or to be rendered, whether by that person or another.

Complimentary service--

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(i) Any lodging, service or item which is provided directly or indirectly to an

individual at no cost or at a reduced cost which is not generally available to the public.

(ii) The term includes a lodging provided to a person at a reduced price due to the

anticipated or actual gaming activities of that person. Group rates, including convention and

government rates, shall be deemed generally available to the public.

Conduct of gaming--The licensed placement and operation of games of chance under the

act or this part and approved by the Board at a licensed facility.

Confidential information--Materials that are not generally available to the public.

Controlling interest--

(i) For a publicly traded domestic or foreign corporation, a controlling interest is

an interest in a legal entity, applicant or licensee if a person's sole voting rights under state law or

corporate articles or bylaws entitle the person to elect or appoint one or more of the members of

the board of directors or other governing board or the ownership or beneficial holding of 5% or

more of the securities of the publicly traded corporation, partnership, limited liability company

or other form of publicly traded legal entity, unless this presumption of control or ability to elect

is rebutted by clear and convincing evidence.

(ii) For a privately held domestic or foreign corporation, partnership, limited

liability company or other form of privately held legal entity, a controlling interest is the holding

of any securities in the legal entity, unless this presumption of control is rebutted by clear and

convincing evidence.

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(iii) A person who owns or beneficially holds less than 5% of the securities of a

privately held domestic or foreign corporation, partnership, limited liability company or other

form of privately held legal entity shall be deemed as having rebutted the presumption of control

by clear and convincing evidence.

Conviction--

(i) A finding of guilt or a plea of guilty or nolo contendere, whether or not a

judgment of sentence has been imposed as determined by the law of the jurisdiction in which the

prosecution was held.

(ii) The term does not include a conviction that has been expunged or overturned

or for which an individual has been pardoned or an order of Accelerated Rehabilitative

Disposition has been entered.

Corporation--A publicly traded corporation.

Credential--A form of identification approved and issued by the Board.

Department--The Department of Revenue of the Commonwealth.

Ex parte communication--

(i) Any off-the-record communications regarding a pending matter before the

Board or which may reasonably be expected to come before the board in a contested on-the-

record proceeding.

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(ii) The term does not include off-the-record communications by and between

members, staff and employees of the Board, the Department, the Pennsylvania State Police, the

Attorney General or other law enforcement officials necessary for their official duties under this

part.

Federal tax identification number--The Social Security number of an individual or the

Employer Identification Number of a business entity, fiduciary or other person.

Final order--One of the following:

(i) An action by the Board which approves, issues, renews, revokes, suspends,

conditions, denies issuance or renewal of a license, permit, certification or registration.

(ii) An action by the Board which affects personal or property rights, privileges,

immunities, duties, liabilities or obligations and disposes of all claims by or against parties

before the Board.

(iii) An action by the Board which is designated by the Board as final.

Financial backer--An investor, mortgagee, bondholder, note holder or other source of

equity or capital provided to an applicant or licensed entity.

Formal record--The pleadings in a matter or proceeding, a notice or Board order

initiating the matter or proceeding, and if a hearing is held: the transcript of a hearing, exhibits

received in evidence, offers of proof, motions, stipulations, subpoenas, proofs of service,

determinations made by the Board thereon, and certifications to the Board.

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Gaming area or gaming floor--Any portion of a licensed facility where slot machines

have been installed for use or play.

Gaming employee--

(i) An employee of a slot machine licensee, including:

(A) Cashiers.

(B) Change personnel.

(C) Counting room personnel.

(D) Slot attendants.

(E) Hosts or other persons authorized to extend complimentary services.

(F) Machine mechanics or computer machine technicians.

(G) Security personnel.

(H) Surveillance personnel.

(I) Supervisors and managers.

(J) Personnel with SLOTS Link security administrator access and

responsibilities.

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(ii) Employees of a licensed supplier, manufacturer or manufacturer designee

whose duties are directly involved with the repair, service or distribution of slot machines and

associated equipment sold or provided to a licensed facility within this Commonwealth.

(iii) Employees of a licensed manufacturer or manufacturer designee whose

duties require the employee's presence on the gaming floor or in a restricted area of a licensed

facility.

(iv) Other employees that the Board determines, after a review of the work being

performed, require a permit for the protection of the integrity of gaming.

Gross terminal revenue--The total of cash or cash equivalent wagers received by a slot

machine minus the total of:

(i) Cash or cash equivalents paid out to patrons as a result of playing a slot

machine which are paid to patrons either manually or paid out by the slot machine.

(ii) Cash paid to purchase annuities to fund prizes payable to patrons over a

period of time as a result of playing a slot machine.

(iii) Any personal property distributed to a patron as the result of playing a slot

machine. This does not include travel expenses, food, refreshments, lodging or services.

(iv) The term does not include counterfeit money or tokens, coins or currency of

other countries which are received in slot machines (except to the extent that they are readily

convertible to United States currency), cash taken in fraudulent acts perpetrated against a slot

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machine licensee for which the licensee is not reimbursed or cash received as entry fees for

contests or tournaments in which the patrons compete for prizes.

Holding company--A person, other than an individual, which, directly or indirectly, owns,

has the power or right to control or to vote 20% or more of the outstanding voting securities of a

corporation or other form of business organization. A holding company indirectly has, holds or

owns any such power, right or security if it does so through an interest in a subsidiary or

successive subsidiaries.

IRS--The Internal Revenue Service of the United States.

Independent contractor--A person who performs professional, scientific, technical,

advisory or consulting services to the Board for a fee, honorarium or similar compensation

pursuant to a contract.

Institutional investor--A retirement fund administered by a public agency for the

exclusive benefit of Federal, State or local public employees, investment company registered

under the Investment Company Act of 1940 (15 U.S.C.A. §§ 80a-1--80a-64), collective

investment trust organized by banks under Part Nine of the Rules of the Comptroller of the

Currency, closed end investment trust, chartered or licensed life insurance company or property

and casualty insurance company, banking and other chartered or licensed lending institution,

investment advisor registered under the Investment Advisors Act of 1940 (15 U.S.C.A. §§ 80b-

1--80b-21), and other persons registered in any foreign jurisdiction and regulated pursuant to a

statute of any foreign jurisdiction that the Board determines to be substantially similar to either

or both of the aforementioned statutes.

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Intermediary--A person, other than an individual, which is:

(i) A holding company with respect to a corporation or other form of business

organization, which holds or applies for a license under the act or this part.

(ii) A subsidiary with respect to a holding company.

Issued, issuance or issue--The date when a determination by the Board approving an

application becomes final, binding and nonappealable and is not subject to a pending legal

challenge.

Key employee--An individual who is:

(i) Employed in a director or department head capacity and who is empowered to

make discretionary decisions that regulate slot machine operations in this Commonwealth,

including the general manager and assistant manager of the licensed facility, director of slot

operations, director of cage operations, director of surveillance, director of marketing, director of

management information systems, director of security, director of human resources, comptroller

and any employee who supervises the operations of these departments or to whom these

department directors or department heads report.

(ii) Employed by a slot machine licensee, manufacturer licensee, or supplier

licensee, whose duties affect or require contact with slot machines, slot monitoring systems,

casino management systems, player tracking systems and wide-area progressive systems for use

or play in this Commonwealth, whether or not the individual is assigned to gaming operations in

this Commonwealth.

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(iii) A sales representative seeking to sell slot machines and associated equipment

for use in this Commonwealth on behalf of a licensed manufacturer, manufacturer designee or

supplier.

(iv) Employed in other positions which the Board will determine based on

detailed analyses of the employee's duties or the job descriptions.

License fee--The amount of money required to be paid for the issuance or renewal of any

type of license required by the act or as established by the Board.

Licensed entity--A slot machine licensee, manufacturer licensee, supplier licensee or

other person licensed by the Board under this part.

Licensed entity representative--A person acting on behalf of or representing the interest

of an applicant, licensee, permittee or registrant, including an attorney, agent or lobbyist

regarding any matter which may reasonably be expected to come before the Board.

Licensed facility--The physical land-based location at which a licensed gaming entity is

authorized to place and operate slot machines.

Licensed gaming entity--A person that holds a slot machine license.

Licensed racetrack or racetrack--

(i) The physical facility and grounds where a person has obtained a license from

either the State Horse Racing Commission or the State Harness Racing Commission to conduct

live thoroughbred or harness race meetings respectively with pari-mutuel wagering.

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(ii) The term ''racetrack'' or ''its racetrack'' means the physical land-based location

at which live horse racing is conducted even if not owned by the person.

Licensed racing entity--A legal entity that has obtained a license to conduct live

thoroughbred or harness horse race meetings respectively with pari-mutuel wagering from either

the State Horse Racing Commission or the State Harness Racing Commission under the Race

Horse Industry Reform Act.

Management company--A person or legal entity which, through a Board-approved

management contract with a slot machine licensee, is responsible for the management of all or

part of the operation of a licensed facility.

Management contract--A contract, subcontract or collateral agreement between a

management company and a slot machine licensee if the contract provides for the management

of all or part of a licensed facility.

Manufacturer--A person who manufactures, builds, rebuilds, fabricates, assembles,

produces, programs, designs or otherwise makes modifications to slot machines or associated

equipment for use or play of slot machines in this Commonwealth for gaming purposes.

Manufacturer designee--A person who is designated by a licensed manufacturer pursuant

to an agreement to supply or repair the licensed manufacturer's slot machines or associated

equipment.

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Manufacturer designee license--A license issued by the Board authorizing a manufacturer

designee to supply or repair slot machines or associated equipment of a licensed manufacturer

for use in this Commonwealth for gaming purposes.

Manufacturer designee licensee--A manufacturer designee that obtains a manufacturer

designee license.

Manufacturer license--A license issued by the Board authorizing a manufacturer to

manufacture or produce slot machines or associated equipment for use in this Commonwealth for

gaming purposes.

Manufacturer licensee--A person that holds a manufacturer license.

Manufacturer's serial number--The unique number permanently assigned to a slot

machine by a manufacturer for identification and control purposes.

Member--An individual appointed to and sworn in as a member of the Board in

accordance with section 1201(b) of the act (relating to Pennsylvania Gaming Control Board

established).

Municipality--A city, borough, incorporated town or township.

Net terminal revenue--The net amount of the gross terminal revenue less the tax and

assessments imposed by sections 1402, 1403, 1405 and 1407 of the act.

Nongaming employee--An employee of a slot machine licensee or certified vendor who is

not included within the definition of ''principal'', ''key employee'' or ''gaming employee,'' and:

32

(i) Whose job duties require the employee to be:

(A) On the gaming floor but do not require the employee to touch or have

contact with slot machines or associated equipment other than exterior cleaning.

(B) In a restricted area and the employee:

(I) Is under the constant supervision of an employee of the slot

machine licensee who is licensed or permitted and has appropriate access clearance to be in the

restricted area.

(II) Is not required to touch or have contact with slot machines or

associated equipment other than exterior cleaning.

(ii) Who the Board determines, after a review of the work being performed,

requires registration for the protection of the integrity of gaming.

Nonprimary location--A facility in which pari-mutuel wagering is conducted by a

licensed racing entity other than the racetrack where live racing is conducted.

Occupation permit--A permit issued by the Board authorizing an individual to be

employed or work as a gaming employee.

Offense--Felonies, crimes, high misdemeanors, misdemeanors, disorderly persons

offenses, petty disorderly offenses, driving while intoxicated/impaired, motor vehicle offenses

and violations of probation or any other court order.

Pending matter or contested on the record proceeding--

33

(i) A matter including the discretionary issuance, approval, renewal,

conditioning, revocation, suspension or denial of any license, permit, certification or registration

or any petitions or motions that would require Board consideration.

(ii) The term does not include a policy or administrative matter.

Permit fee--The amount of money required to be paid for issuance or renewal of any type

of permit required by the Board.

Permittee--A holder of a permit issued under this part.

Person--A natural person, corporation, foundation, organization, business trust, estate,

limited liability company, licensed corporation, trust, partnership, limited liability partnership,

association or other form of legal business entity.

Principal--Includes the following:

(i) An officer.

(ii) Director.

(iii) Person who directly holds a beneficial interest in or ownership of the

securities of an applicant or licensee.

(iv) Person who has a controlling interest in an applicant or licensee, or has the

ability to elect a majority of the Board of directors of a licensee or to otherwise control a

licensee.

34

(v) Lender or other licensed financial institution of an applicant or licensee, other

than a bank or lending institution which makes a loan or holds a mortgage or lien acquired in the

ordinary course of business.

(vi) Underwriter of an applicant or licensee.

(vii) Other persons or employees of an applicant, slot machine licensee,

manufacturer licensee or supplier licensee deemed to be a principal by the Board.

Publicly traded corporation--A person other than an individual which:

(i) Has a class or series of securities registered under the Securities Exchange Act

of 1934 (15 U.S.C.A. §§ 78a--78nn).

(ii) Is a registered management company under the Investment Company Act of

1940.

(iii) Is subject to the reporting obligations imposed by section 15(d) of the

Securities Exchange Act of 1934 (15 U.S.C.A. § 78o(d)) by reason of having filed a registration

statement which has become effective under the Securities Act of 1933 (15 U.S.C.A. §§ 77a--

77aa).

Race Horse Industry Reform Act--4 P. S. §§ 325.101--325.402.

Registered vendor--A vendor that is registered with the Board.

Regular or continuing basis--A vendor will be deemed to conduct business on a regular

or continuing basis if:

35

(i) The total dollar amount of transactions with a single slot machine licensee or

applicant is or will be greater than $200,000 within any consecutive 12 month period.

(ii) The total dollar amount of transactions with slot machine licensees or

applicants is or will be greater than $500,000 within any consecutive 12 month period.

Restricted area--An area where access is limited and is specifically designated by the

Board as restricted, including:

(i) The cashiers' cage.

(ii) The soft count room.

(iii) The surveillance monitoring room.

(iv) The slot machine storage and repair rooms.

(v) The progressive controller room.

(vi) The central control computer room.

(vii) The information technology department.

(viii) Any additional area that the slot machine licensee designates as restricted in

its Board-approved internal controls.

Revenue- or tourism-enhanced location--A location within this Commonwealth

determined by the Board, which will maximize net revenue to the Commonwealth or enhance

36

year-round recreational tourism within this Commonwealth, in comparison to other proposed

facilities and is otherwise consistent with the act and its declared public policy purposes.

SEC--The Securities and Exchange Commission of the United States.

Secretary--Secretary to the Board.

Securities--As defined in the Pennsylvania Securities Act of 1972 (70 P. S. §§ 1-101--1-

703).

Slot machine--

(i) A mechanical or electrical contrivance, terminal, machine or other device

approved by the Board which, upon insertion of a coin, bill, token, gaming voucher, coupon or

similar object therein or upon payment of any consideration, including the use of electronic

payment system except a credit card or debit card, is available to play or operate, the play or

operation of which, whether by reason of skill or application of the element of chance, or both,

may deliver or entitle the person playing or operating the contrivance, terminal, machine or other

device to receive cash, billets, tokens, gaming vouchers or electronic credits to be exchanged for

cash or to receive merchandise or anything of value, whether the payoff is made automatically

from the machine or manually. A slot machine:

(A) May utilize spinning reels or video displays, or both.

(B) May or may not dispense coins, vouchers or tokens to winning

patrons.

37

(C) May use an electronic credit system for receiving wagers and making

payouts.

(ii) The term includes associated equipment necessary to conduct the operation of

the contrivance, terminal, machine or other device.

Slot machine license--A license issued by the Board authorizing a person to place and

operate slot machines under the act.

Slot machine licensee--A person that holds a slot machine license.

SLOTS Link--An electronic application system developed by the Board.

Staff--An employee or an independent expert, including but not limited to, attorneys,

accountants, investment bankers, architects, engineers, scientific and technical consultants and

licensed financial brokers retained by the Board.

State gaming receipts--Revenues and receipts required by the act to be paid into the State

Gaming Fund, the Pennsylvania Race Horse Development Fund and the Pennsylvania Gaming

Economic Development and Tourism Fund, and all rights, existing on July 5, 2004, or coming

into existence after July 5, 2004, to receive any of those revenues and receipts.

State Treasurer--The State Treasurer of the Commonwealth.

Statement of Investigation--An order of the Board in response to a petition for an order

regarding inquiry and investigation of a purchase of an eligible applicant or licensee which

specifies the particular criterion satisfied by the purchaser, provides for the continuing obligation

38

of the purchaser to provide information to the Board, is applicable only as to the purchase of a

specific eligible applicant or licensee, and provides an expiration date not to exceed 6 months

from the date of issuance unless otherwise extended by the Board.

Subsidiary--A person other than an individual. The term includes:

(i) A corporation, any significant part of whose outstanding equity securities are

owned, subject to a power or right of control, or held with power to vote, by a holding company

or an intermediary company.

(ii) A significant interest in a person, other than an individual, which is owned,

subject to a power or right of control, or held with power to vote, by a holding company or an

intermediary company.

(iii) A person deemed to be a subsidiary by the Board.

Supplier--A person that sells, leases, offers or otherwise provides, distributes or services

slot machines or associated equipment for use or play of slot machines in this Commonwealth at

a licensed gaming facility.

Supplier license--A license issued by the Board authorizing a supplier to provide products

or services related to slot machines or associated equipment to licensed gaming entities.

Supplier licensee--A person that holds a supplier license.

39

Trade secret--A private formula, pattern, device, cost study or compilation of information

which is used in a business and which, if disclosed could negate an advantage over competitors

who do not know or use it.

Underwriter--As defined in the Pennsylvania Securities Act of 1972.

Vendor--

(i) A person who provides goods or services to a slot machine licensee or

applicant, but who is not required to be licensed as a manufacturer, manufacturer designee,

supplier, management company or junket enterprise.

(ii) The term includes:

(A) Suppliers of alcoholic beverages (if not otherwise regulated by the

Pennsylvania Liquor Control Board), food and nonalcoholic beverages.

(B) Refuse handlers.

(C) Vending machine providers and service personnel.

(D) Linen and uniform suppliers.

(E) Janitorial and maintenance companies, not relating to the repair of slot

machines or associated equipment.

(F) Tenant businesses or franchises located within licensed facilities.

(G) Providers of transportation services.

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(H) Companies, subcontractors and professionals involved in the

construction of a facility for a slot machine licensee or applicant.

(I) Lessors of real property or goods.

(J) Other entities which the Board will determine based on detailed

analyses by the Board of vendor contracts.

Vendor certification--A certification issued by the Board authorizing a vendor to provide

goods or services to a slot machine licensee or applicant.

Vendor registration--A registration issued by the Board authorizing a vendor to provide

goods or services to a slot machine licensee or applicant.

§ 401a.4. Jurisdiction.

(a) The Board will have exclusive jurisdiction over all matters within the scope of its

powers under the act. (b) Nothing contained in this part shall be construed to limit the powers

and duties of the Board as provided in the act.


§§ 403.1 – 403.7. (Reserved).

CHAPTER 403a. BOARD OPERATIONS AND ORGANIZATION

41


The following words and terms, when used in this chapter, have the following meanings,


Financial interest--

(i) An ownership, property, leasehold or other beneficial interest in an entity.

(ii) The term does not include an interest which is held or deemed to be held in

any of the following:

(A) Securities that are held in a pension plan, profit-sharing plan,

individual retirement account, tax sheltered annuity, a plan established pursuant to section 457 of

the Internal Revenue Code of 1986 (26 U.S.C.A. § 457), or any successor provision, deferred

compensation plan whether qualified or not qualified under the Internal Revenue Code of 1986,

or any successor provision, or other retirement plan that:

(I) Is not self-directed by the individual.

(II) Is advised by an independent investment adviser who has sole

authority to make investment decisions with respect to contributions made by the individual to

these plans.

(B) A tuition account plan organized and operated under section 529 of

the Internal Revenue Code of 1986 (26 U.S.C.A. § 529) that is not self-directed by the

individual.

42

(C) A mutual fund where the interest owned by the mutual fund in a

licensed entity does not constitute a controlling interest as defined in this part.

Ownership interest--Owning or holding or being deemed to hold, debt or equity securities

or other ownership interest or profit interest.

§ 403a.2. Participation at meetings and voting.

(a) Qualified majority vote. An action by the Board, except as set forth in subsections (b)

and (c), including the approval, issuance, denial or conditioning of a license or the making of an

order or the ratification of a permissible act done or order made by one or more of the members

of the Board will require a qualified majority vote consisting of at least one gubernatorial

appointee and the four legislative appointees.

(b) Majority vote. An action by the Board to suspend, revoke, not renew, void or require

forfeiture of a license, permit, certification or registration previously issued by the Board, to

impose an administrative fine or penalty or to issue cease and desist will require a majority vote

of all the Board members.

(c) Participation. A member may not participate in a hearing, proceeding or other matter

in which the member, or the immediate family thereof, has a financial interest in the subject

matter of the hearing or proceeding or other interest that could be substantially affected by the

outcome of the hearing or proceeding, without first fully disclosing the nature of the interest to

the Board and other persons participating in the hearing or proceeding. For purposes of the

subsection, the term ''immediate family'' means spouse, parent, brother, sister or child.

43

(d) Disqualifying interest. If a Board member has a disqualifying interest in a voting

matter, the member shall disclose the nature of the disqualifying interest, disqualify himself and

abstain from voting in a proceeding in which his objectivity, impartiality, integrity or

independence of judgment may be reasonably questioned, including instances where he knows

that he possesses a substantial financial interest in the subject matter of the proceeding or an

interest that could be substantially affected by the outcome of the proceeding. If it is a legislative

appointee member that has disqualified himself, the qualified majority will consist of the

remaining three legislative appointees and at least two gubernatorial appointees.

(e) Member abstention. When a member has disqualified himself, the member's

abstention from voting will apply only to the singular voting matter that led to the

disqualification and not apply to other matters under consideration by the Board for which the

member is otherwise qualified.

§ 403a.3. Meetings.

(a) Public sessions. The proceedings of all public sessions will be conducted in

accordance with 65 Pa.C.S. Chapter 7 (relating to the Sunshine Act).

(b) Regularly scheduled meetings. The Board will meet once a month, and on other dates

as the Board determines.

(c) Participation by means of telephone or video teleconference. A Board member may

participate in a meeting by means of telephone or video teleconference when it is impractical for

the Board member to attend the meeting in person.

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(d) Record of proceedings. The Board will keep a record of all proceedings held at

public meetings of the Board. A verbatim transcript of those proceedings will be prepared by and

will be the property of the Board. The verbatim transcript will be available for inspection at the

Board's office during normal business hours.

§ 403a.4. Board office hours.

Board offices will be open from 8:30 a.m. to 5 p.m. on business days except Saturdays,

Sundays, legal holidays and Commonwealth office closures declared by the Governor, unless

otherwise directed by the Board.

§ 403a.5. Public communication.

Requests for information regarding the Board may be directed to:

Office of Communications

Pennsylvania Gaming Control Board

P. O. Box 69060

Harrisburg, PA 17106-9060

§ 403a.6. Delegation of powers.

(a) The Board may, consistent with the act and this part, delegate its authority to perform

any of its functions to a Board member or member of the Board's staff.

45

(b) A delegation of Board authority will be effected by promulgation of a regulation or

the adoption of a formal resolution at a public meeting of the Board. The regulation or resolution

will specify:

(1) The specific authority delegated.

(2) The Board member or Board staff members to whom the authority is

delegated.

(3) Limitations or conditions imposed on the authority delegated.

(c) Delegations of authority made under this section will remain in effect indefinitely

unless otherwise specified in the implementing regulation or resolution.

(d) A delegation of authority adopted by the Board may be modified or rescinded by the

Board through promulgation of a regulation or the adoption of a subsequent formal resolution at

a public meeting of the Board.

(e) Notwithstanding any other provision of this section, a matter that has been delegated

to the Board staff may alternatively be presented to and determined by the Board on its own

motion, at the discretion of the Chairperson or at the request of the Board staff.

§ 403a.7. Temporary emergency orders.

(a) Upon request of the Office of Enforcement Counsel in accordance with subsection

(d), a temporary emergency order may be issued by, or on behalf of, the Executive Director of

the Board. A temporary emergency order may be issued without a hearing and without advanced

46

notice and will notify the person to whom the temporary emergency order is issued that he may

request a hearing to be held by the Executive Director within 72 hours of the request being filed

with the Board.

(b) A temporary emergency order may be issued to suspend a license, certification,

permit or registration or to direct that a person refrain from engaging in, or cease and desist

engaging in, specific conduct.

(c) A temporary emergency order may be issued if there is insufficient time to provide

notice and hearing prior to the issuance of the order; the order is necessary to preserve the public

health, welfare, or safety or the integrity of gaming in the Commonwealth; and determination of

one of the following has occurred:

(1) A person holding a license, certification, permit or registration issued by the

Board has been charged with or convicted of a felony, a criminal gaming offense, or crime of

dishonesty or false statement or other offense that would make the person ineligible or unsuitable

to hold a license, permit, certification or registration.

(2) A licensee has failed to pay required assessments or to satisfy its tax

obligations under the act.

(3) The action is necessary to prevent or cure a violation of any provision of the

act, this part or other Federal or State laws or regulations.

47

(d) If the Office of Enforcement Counsel determines that circumstances exist which

require that immediate action be taken on behalf of the Board, it may submit a request for a

temporary emergency order. The request will include:

(1) The circumstances upon which the determination to request the order was

made.

(2) The grounds upon which the order is being requested.

(3) The specific relief sought in the order.

(e) A temporary emergency order will be issued in writing and filed, together with the

request for a temporary emergency order required by subsection (d), with the Clerk no later than

the close of the next business day following its issuance.

(f) A temporary emergency order will specify that the person subject to the temporary

emergency order may request an informal hearing before the Executive Director within 72 hours

of filing the request with the Clerk.

(g) The Bureau will cause the temporary emergency order and the request for a

temporary emergency order required by subsection (d) to be served upon the person named in the

temporary emergency order. Service required by this subsection will be made as expeditiously as

practicable following the issuance of the order and the request. Service will be made in the

manner prescribed by § 491.3 (relating to service by the Board).

48

(h) Within 72 hours of the filing a request for an informal hearing with the Board, an

informal hearing before the Executive Director or a designee will be held at the Board

headquarters.

(i) The Executive Director or a designee may sign subpoenas to secure the attendance of

witnesses and the production of documents.

(j) The procedure for the informal hearing will be as follows:

(1) The Executive Director or a designee will call the hearing to order and

present the request for a temporary emergency order filed by the Office of Enforcement Counsel

under subsection (d).

(2) The person named in the temporary emergency order may respond by

submitting evidence and witnesses supporting the position that the temporary emergency order

should be dissolved or modified.

(3) The Executive Director or a designee may require that witnesses testify under

oath. All relevant evidence is admissible. The Executive Director or a designee may question

witnesses.

(4) The licensee may make a concluding argument as to why the temporary

emergency order should be dissolved or modified.

(5) Upon receiving all evidence presented by the person named in the order and

hearing the person's final argument, the Executive Director or a designee will render a decision

as to whether or not the temporary emergency order will continue, be modified or dissolved

49

within 72 hours. Service of the decision will be made in the manner prescribed by § 491.3.

Unless the Executive Director dissolves the temporary emergency order, the matter will be

scheduled for a hearing before the Board as provided in subsection (k).

(k) Once a temporary emergency order has been issued under this section, unless it has

been subsequently dissolved by the Executive Director, the temporary emergency order will be

presented to the Board at its next meeting or within 10 business days, whichever is longer at

which time the Board may do one of the following:

(1) Conduct a hearing to determine the validity of the issuance of the order.

(2) Refer the matter to the Office of Hearings and Appeals under § 492.6

(relating to hearings generally) and direct that a hearing be conducted by a hearing officer and a

report submitted to the Board.

(l) In all hearings relating to the disposition of a temporary emergency order, whether the

hearing is conducted by the Board or by a hearing officer, the following procedure will occur:

(1) The temporary emergency order, the request for the temporary order and any

modifications to the temporary order will be made a part of the evidentiary record of the

proceeding.

(2) The Office of Enforcement Counsel will present evidence to the Board or the

hearing officer in support of the temporary emergency order.

(3) The person named in the order shall have the burden of rebutting the evidence

presented by the Office of Enforcement Counsel.

50

(m) If the hearing is conducted by the Board, the Board may take one of the following

actions upon conclusion of oral arguments and evidentiary presentations:

(1) If the Board finds that the unrebutted facts and circumstances presented are

sufficient to support the issuance of the temporary emergency order, that dissolution of the

temporary emergency order would pose an immediate threat to the public health, safety or

welfare, or the public's interest in the effective regulation of gaming demands the action, it may

adopt a resolution ratifying or modifying the temporary emergency order. This order may be

appealed under § 494.11 (relating to appeals).

(2) If the Board finds that there is insufficient cause to continue the temporary

emergency order, it may adopt a resolution dissolving the emergency order and the privileges of

the person named in the order will be reinstated.

(3) If the Board finds that further hearing is necessary, it may refer the matter to

the Office of Hearings and Appeals for additional presentation of evidence and testimony of

witnesses. If the matter is referred to the Office of Hearings and Appeals, the temporary

emergency order will remain in effect, with or without modification as the Board deems

appropriate.

(n) If the Board adopts a resolution, the resolution may establish the length of term for

the order by establishing an expiration date, dependent on the completion of specified remedial

actions or dependent on the filing of, or final resolution of, a complaint alleging the person

violated a provision of the act or this part. If the expiration date is dependent upon specific

remedial actions, the Board will provide a detailed description of the remedies in the resolution

51

and will establish procedures whereby the person can demonstrate that it has complied with the

required remedies.

(o) Any resolution adopted is a final order of the Board for purposes of appeal.

(p) Resolutions ratifying or dissolving temporary emergency orders adopted by the

Board under this section will have no effect upon the power and duty of the Office of

Enforcement Counsel to initiate, in its sole discretion, proceedings for violations of the act or this

part or upon the outcome of any proceeding so initiated.

(q) Copies of the Board's final order will be served on the person named in the order by

certified or overnight express mail, postage prepaid; or by personal delivery in accordance with

§ 491.3.

(r) If the Board refers the matter to the Office of Hearings and Appeals, the hearing will

be subject to the following requirements:

(1) The Chairperson will designate a presiding officer to direct the hearing and

rule on evidentiary matters.

(2) The hearing before the presiding officer will occur no more than 10 business

days after the Board refers the matter to the Office of Hearings and Appeals, unless a delay is

requested by the person named in the temporary emergency order.

(3) Within 10 days following the conclusion of hearing, the presiding officer will

forward a recommendation for action on the temporary emergency order to the Board. A copy of

52

the recommendation will be served on the person named in the temporary order by certified or

overnight express mail or by personal delivery in accordance with § 491.3.

§ 403a.8. Licensed entity representative meetings.

(a) If a Board member conducts a meeting with a licensed entity representative under

section 1201.1(c)(7) of the act (relating to code of conduct), the Board member will record the

following in the log:

(1) The names of individuals with whom the Board member met.

(2) The date and time of the meeting.

(b) The Board member will include a memorandum of the content of the discussion in

the log.

(c) The log will be available for public inspection.

CHAPTER 405. (Reserved)

§§ 405.1--405.7. (Reserved).

CHAPTER 405a. BUREAU OF INVESTIGATIONS AND ENFORCEMENT

§ 405a.1. General duties and powers.

The Bureau has the powers and duties set forth in section 1517 of the act

(relating to enforcement) including:

53

(1) The investigation and review of applicants seeking a license, permit,

certification or registration.

(2) The investigation of licensees, permittees, registrants, certified

vendors and other persons for potential violations of the act, including potential

violations referred to the Bureau by the Board or other persons.

(3) The monitoring of slot machine operations to ensure compliance with

the act, this part and the integrity of gaming, including internal controls, exclusion list

enforcement, underage gaming and drinking, individual complaints, information

systems, integrity and security issues.

(4) The inspection and examination of all premises where slot machine

operations are conducted, gaming devices or equipment are manufactured, sold,

distributed or serviced or where records of these activities are prepared or maintained

as provided in section 1517(e) of the act. Inspections may include the review and

reproduction of any document or record.

54

(5) The conduct of audits of slot machine operations as necessary to

ensure compliance with the act and this part. An audit may include, but is not limited to,

reviews, examinations and inspections of:

(i) Accounting, administrative and financial records and procedures

utilized by the licensed entity.

(ii) Internal control procedures and management control

procedures.

(iii) Security and surveillance departments.

(iv) Corrective action taken by the licensee to resolve reported

deficiencies.

(v) Reports issued by an independent certified public accountant or

independently registered public accounting firm pertaining to the adequacy of the

licensee's system of internal controls over financial reporting.

55

(vi) The licensee's responses, if any, to the reports noted in

paragraph (v).

(vii) Other matters required by the Board or the Bureau.

(6) The referral of possible criminal violations under the act to the

Pennsylvania State Police.

(7) Be a criminal justice agency under 18 Pa.C.S. Chapter 91 (relating to

criminal history record information).

§ 405a.2. Information.

(a) An applicant for or holder of a license, permit, certification or registration shall

provide all information, data and documents requested by the Bureau under section

1517(a) of the act (relating to enforcement).

(b) The Director of the Bureau, the Chief Enforcement Counsel, and their

designees, will have the power and authority to administer oaths and affirmations for the

purpose of obtaining voluntary sworn statements with regard to any matter or thing

56

which may properly fall within the jurisdiction of the Board. Any person so designated

will have the power and authority to obtain by subpoena the sworn statement of a

person deemed to have information relevant to an investigation that the Board is

authorized to conduct. Designation pursuant to this section will be made in writing, filed

with the Clerk, and remain in effect until revoked.

(c) A State or local law enforcement agency, including the Pennsylvania State

Police and the Office of Attorney General, the Department or other executive agency

may provide information, data and documents requested by the Bureau relating to an

applicant for or holder of a license, permit, certification or registration.

(d) The Bureau may, upon request, provide pertinent information relating to an

applicant for or holder of a license, permit, certification or registration to law

enforcement agencies, including the Federal Bureau of Investigation or other domestic

or foreign agencies or jurisdictions.

57

(e) Information under this section may be provided or received by electronic

distribution.

§ 405a.3. Office of Enforcement Counsel.

(a) The Office of Enforcement Counsel within the Bureau has the following powers and

duties:

(1) Advise the Bureau on all matters, including the granting of licenses, permits,

certifications or registrations, the conduct of background investigations, audits and inspections

and the investigation of potential violations of the act or this part.

(2) Make recommendations and objections relating to the issuance of licenses,

permits, certifications and registrations.

(3) Initiate, in its sole discretion, proceedings for violations of the act or this part

by filing a complaint or other pleading with the Board seeking civil fines or penalties, the

imposition of conditions on a license, permit, certification or registration, or the suspension or

revocation of a license, permit, certification or registration.

(4) Act as the prosecutor in enforcement actions under the act.

(5) Seek a settlement that may include fines, penalties or other actions subject to

approval by the Board.

(6) Appear at administrative hearings and other proceedings before the Board.

58

(b) The Director of the Office of Enforcement Counsel will report to the Executive

Director of the Board on administrative and operational matters.

(c) The Director of the Office of Enforcement Counsel may be removed by the Board

only for good cause shown.

§ 405a.4. Conduct.

(a) An attorney representing the Bureau or Office of Enforcement Counsel, or an

employee involved in the hearing process, may not discuss the case ex parte with a

presiding officer assigned to the case, the Chief Counsel or an attorney assigned to the

case from the Office of Chief Counsel or a Board member.

(b) A presiding officer, the Chief Counsel or an attorney assigned to the case

from the Office of Chief Counsel or a Board member may not discuss or exercise a

supervisory responsibility over any employee with respect to an enforcement hearing

with which the employee is involved.

(c) If it becomes necessary for the Chief Counsel or an attorney from the Office

of Chief Counsel or a Board member to become involved on behalf of the Board in any

enforcement proceeding, the Chief Counsel or the attorney from the Office of Chief

59

Counsel or the Board member involved shall be prohibited from participating in the

adjudication of that matter.

§ 405a.5. Investigatory subpoena.

(a) The Director of the Office of Enforcement Counsel is authorized to require

the attendance and testimony of witnesses and the production of books, accounts,

papers, records, documents, files, computer files and photographs in original or

electronic format necessary for all action within the authority of the Bureau under the act

or this part.

(b) The Director of the Office of Enforcement Counsel or his representative may

issue subpoenas.

(c) In case of disobedience of any subpoena or the contumacy of any witness

appearing before the Director of the Office of Enforcement Counsel or a representative,

the Director of the Office of Enforcement Counsel or a representative may invoke the

aid of Commonwealth Court or any court of record of this Commonwealth to require the

person subpoenaed to obey the subpoena or to give evidence or to produce books,

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accounts, papers, records, documents, files, computer files and photographs in original

or electronic format relative to the matter in question.

(d) The issuance of a subpoena under this section will not be required to secure

the cooperation of a person who is an applicant for, or the holder of, a license, permit,

certification or registration issued by the Board, or to secure the voluntary cooperation

of any person.

§ 405a.6. Enforcement action.

(a) Upon a determination by the Office of Enforcement Counsel that sufficient

facts exist to support enforcement action against a person holding a license, permit,

certification or registration issued by the Board, the Office of Enforcement Counsel will

initiate a complaint in accordance with § 493.2 (relating to complaints), including a

proposed order for an enforcement action and serve the complaint in accordance with

§ 491.3 (relating to service by the Board).

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(b) The complaint for an enforcement action will include a statement of the facts,

the statute, regulation or statement of conditions that the person is being charged with

violating and the remedy sought. The proposed order will be accompanied by a

certificate of service demonstrating the date of service.

(c) Within 15 days from the date of service of complaint for an enforcement

action, the person may file a notice of defense in accordance with § 493.2(d) and serve

a copy of the request on the Office of Enforcement Counsel. Failure to file a notice of

defense for an enforcement action complaint within 15 days will be deemed:

(1) A waiver by the person of any right to an administrative hearing before

the Board.

(2) An admission by the person of all matters and facts alleged in the

proposed order for enforcement action.

(3) Consent by the person to the entry of a final order by the Board

disposing of the enforcement matter.

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(d) Upon the person's failure to request a hearing within the prescribed 15 days,

the Office of Enforcement Counsel will present the proposed enforcement order to the

Board. The Board may, by resolution, adopt the proposed enforcement order.

(e) The Clerk will send a copy of the Board's final order to the person by certified

mail.

CHAPTER 407. (Reserved)

§§ 407.1 – 407.3. (Reserved)

CHAPTER 407a. PUBLIC ACCESS TO BOARD RECORDS

§ 407a.1. Case files.

(a) Formal records. The Board will maintain a nonconfidential file and a

confidential file for all formal records.

(b) Access. Access to formal records will be governed by the following:

(1) Nonconfidential files will be available for inspection during normal

Board business hours.

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(2) Upon receipt of a request for access to confidential files, the Board or

the Bureau will review the request and provide its determination as to whether the

material may be released for inspection within 30 days of the request.

(3) For good cause, the Board may extend the time limits applicable to

requests for access to confidential files.

(c) The Board may issue protective orders or establish standards governing the

protection of proprietary or confidential documents for a given proceeding or a given

type of proceeding. All parties to a proceeding shall submit, classify and mark

documents in accordance with the directives of the Board or its designee. In the

absence of any protective order or standard, parties shall clearly mark documents that

are deemed to be proprietary or confidential. The documents will be treated as marked

by the Board.

(d) Any party or member of the public may dispute the designation of a

document as submitted by filing a notice of dispute with the Board. The Board will

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determine the proper classification of documents subject to a notice of dispute as soon

as administratively possible.

§ 407a.2. Minutes of public meeting and annual report.

Minutes of the public meeting and annual reports will be available for public

inspection upon request to the Secretary during normal Board business hours. Copies

will be provided upon request and payment of the cost for copying as the Board may

establish through a schedule published in the Pennsylvania Bulletin.

§ 407a.3. Confidential information.

(a) Confidential information may include background investigation information,

including information provided under section 1310(a) of the act (relating to slot machine

license application character requirements), submitted in connection with an application

required for the issuance of any license, permit, certification or registration under this

part, discovery procedures, or cross-examination or that is provided as a courtesy to a

party in a formal proceeding received by the Board or the Department as well as

records obtained or developed by the Board or the Department as part of an

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investigation related to an applicant or holder of a license, permit, certification or

registration containing any of the following:

(1) Personal information, including home addresses, telephone numbers,

Social Security numbers, educational records, memberships, medical records, tax

returns and declarations, actual or proposed compensation, financial account records,

credit-worthiness or financial condition relating to an applicant, licensee or permittee or

the immediate family thereof.

(2) Documents and information relating to proprietary information, trade

secrets, patents or exclusive licenses, architectural and engineering plans and

information relating to competitive marketing materials and strategies which may include

customer-identifying information or customer prospects for services subject to

competition.

(3) Security information including risk prevention plans, detection and

countermeasures, emergency management plans, security and surveillance plans,

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equipment and usage protocols and theft and fraud prevention plans and

countermeasures.

(4) Information with respect to which there is a reasonable possibility that

public release or inspection of the information would constitute an unwarranted invasion

into personal privacy as determined by the Board.

(5) Records or information that is designated confidential by statute or the

Board.

(6) Records of an applicant or licensee not required to be filed with the

SEC by issuers that either have securities registered under section 12 of the Securities

Exchange Act of 1934 (15 U.S.C.A. § 781) or are required to file reports under section

15(d) of that act (15 U.S.C.A. § 78o(d)).

(7) Records considered nonpublic matters or information by the SEC as

provided by 17 CFR 200.80 (relating to commission records information).

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(b) Confidential information may be released by the Board under the following

circumstances:

(1) To State or Federal law enforcement agencies or entities upon

approval of the Attorney General or pursuant to a lawful order issued by court of

competent jurisdiction.

(2) To the public, in whole or in part, if one of the following occurs:

(i) Upon written request from the applicant or holder of a license,

permit, certification or registration, to the extent that the information does not contain

otherwise confidential information about another person.

(ii) If the information subsequently becomes a part of the public

domain by an action by the applicant or holder of a license, permit, certification or

registration.

(3) To a person with the written consent of the applicant or holder of a

license, permit, certification or registration.

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Subpart B. LICENSING, REGISTERING, CERTIFYING AND

PERMITTING

CHAPTER 421. GENERAL PROVISIONS

§ 421.1. General requirements.

(a) A license permit, certification or registration

issuance, renewal or other approval issued by the Board is a

revocable privilege. No person holding a license, permit,

certification or registration, renewal, or other approval is

deemed to have any property rights.

(b) By filing an application with the Board, an applicant

consents to an investigation of the applicant’s general

suitability, financial suitability, character, integrity, and

ability to engage in, or be associated with, gaming activity in

this Commonwealth to the extent deemed appropriate by the Board.

The investigation may include a background investigation of the

applicant, employees of the applicant, all persons having a

controlling interest in the applicant, and other persons as

determined by the Board.

(c) By filing an application for a license, permit,

certification or registration issuance, renewal or other

approval from the Board, an applicant agrees to:

(1) Abide by the provisions of the act and this part.

(2) Waive liability as to the Board, its members, its

employees, the Pennsylvania State Police, the Commonwealth and

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its instrumentalities for damages resulting from disclosure or

publication in any manner, other than a willfully unlawful

disclosure or publication of material or information acquired

during an investigation of the applicant.

(3) Consent to execute all releases requested by the

Board.

(d) An applicant for or holder of a license, permit,

certification or registration may not give or offer to give,

compensation or reward or a percentage or share of the money or

property played or received through gaming to a public official

or public employee in consideration for or in exchange for

obtaining a license, permit, certification or registration

issued under to this part.

(e) An applicant for or holder of a license, permit,

certification or registration shall have a duty to inform the

Bureau of an action which the applicant for or holder of a

license, permit, certification or registration believes would

constitute a violation of the act. No person who so informs the

Bureau may be discriminated against by an applicant for or

holder of a license, permit, certification or registration for

supplying the information.

(f) An applicant for a license, permit, certification or

registration shall have a continuing duty to inform the Board of

any changes in the information supplied to the Board in or in

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conjunction with the original or renewal application or a change

in circumstances that may render the applicant for a license,

permit, certification or registration ineligible, unqualified or

unsuitable to hold a license, permit, certification or

registration under the standards and requirements of the act and

of this part.

(g) An applicant for a license, permit, certification or

registration shall have a continuing duty to promptly provide

any information requested by the Board relating to its

application or regulation and cooperate with the Board in

investigations, hearings, and enforcement and disciplinary

actions.

(h) An application submitted to the Board constitutes the

seeking of a privilege. An applicant shall at all times have

the burden of proof. It shall be the applicant’s affirmative

responsibility to establish the facts supporting its suitability

under the act and this subpart by clear and convincing evidence,

including why a license, permit, certification or registration

should be issued or renewed by the Board.

(i) A person holding a license, permit, certification or

registration issued by the Board who violates a provision of the

act or this part may be held jointly or severally liable for the

violation.

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(j) The Board will maintain lists of all applicants for

licenses, permits, certifications or registrations under this

part as well as a record of all actions taken with respect to

each applicant. The lists will be posted on the Board’s website

(www.pgcb.state.pa.us).

§ 421.2. Disqualification criteria.

(a) An application for issuance or renewal of a license,

permit, certification or registration may be denied, or a

license, permit, certification or registration may be suspended

or revoked if:

(1) The applicant has failed to prove to the

satisfaction of the Board that the applicant or any of the

persons required to be qualified, are in fact qualified in

accordance with the act and with this part.

(2) The applicant for or holder of a license, permit,

certification or registration has violated the act or this part.


certification or registration is disqualified under the criteria

in the act.

Source: The provisions of this § 421.1 amended June 10, 2006, effective May 19, 2006, 36 Pa.B. 2899; amended July 22, 2006, effective June 28, 2006, Pa.B. 3943; amended July 22, 2006, effective June 28, 2006, Pa.B. 3939; amended April 28, effective March 15, 2007, 37 Pa.B. 1970.

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certification or registration has materially departed from a

representation made in the application for licensure or renewal.


certification or registration has failed to comply with

applicable Federal or state laws or regulations.

(b) A denial of an application or nonrenewal, suspension or

revocation of a license, permit, certification or registration

may be made for a sufficient cause consistent with the act and

the public interest.

§ 421.3. Investigations; supplementary information.

(a) The Board may make an inquiry or investigation

concerning an applicant for or holder of a license, permit,

certification or registration or any affiliate, intermediary,

subsidiary or holding company of the applicant for or holder of

a license, permit, certification or registration as it may deem

appropriate either at the time of the initial application or at

any time thereafter.

(b) It shall be the continuing duty of applicants and a

holder of a license, permit, certification or registration to

provide full cooperation to the Board in the conduct of an

Source: The provisions of this § 421.2 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended February 18, 2006, effective February 2, 2006, 36 Pa.B. 909, amended July 1, 2006, effective June 15, 2006, 36 Pa.B. 3407; amended, April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

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inquiry or investigation and to provide supplementary

information requested by the Board.

§ 421.4. Presuitability determination.

(a) Upon request from an eligible applicant for or holder

of a license and upon receipt of an application and the

appropriate fees, the Board will make an inquiry or

investigation of a potential purchaser of an applicant for or

holder of a license, certification or registration as if the

purchaser were an eligible applicant. The eligible applicant

for or holder of a license may petition the Board, on behalf of

the purchaser, for a Statement of Investigation under § 493.4

(relating to petitions generally).

(b) The applicant for or holder of a license making the

request shall reimburse the costs associated with the inquiry or

investigation upon request of the Board.

(c) This inquiry or investigation does not replace the

application process required under the act and this part which

is a requirement for licensure, certification or registration.

Source: The provisions of this § 421.3 amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970. Source: The provisions of this § 421.4 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended May 27, 2006, effective May 4, 2006, 36 Pa.B. 2615; amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

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§ 421.5. Monopolization of economic opportunities and control.

(a) In accordance with section 1102(5) of the act (relating

to legislative intent), a slot machine license, management

company license or other certification or registration may not

be issued to or held by a person if the Board determines that

the issuance or holding will result in the monopolization of

economic opportunities and control of the licensed gaming

facilities in this Commonwealth by that person.

(b) For purposes of this section, monopolization of


facilities means that a person:

(1) Would have actual or potential domination of the

gaming market in this Commonwealth contrary to the legislative

intent.

(2) Could substantially impede or suppress competition

among licensees.

(3) Could adversely impact the economic stability of

the gaming industry in this Commonwealth.

(c) In determining whether the issuance or holding of a

license by a person will result in monopolization of economic

opportunities and control of the licensed gaming facilities in

this Commonwealth, the Board will consider the following

criteria:

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(1) The percentage share of the market presently

controlled by the person in each of the following categories:

(i) Total number of slot machine licenses

available under section 1307 of the act (relating to number of

slot machine licenses).

(ii) Total gaming floor square footage.

(iii) Number of slot machines.

(iv) Gross terminal revenue.

(v) Net terminal revenue.

(vi) Total amount of money, vouchers and

electronic money transfers through the use of a cashless

wagering system made to slot machines.

(vii) Number of persons employed by the licensee.

(2) The estimated increase in the market share in the

categories in paragraph (1) if the person is issued or permitted

to hold the license.

(3) The relative position of other persons who hold

licenses, as evidenced by the market share of each person in the

categories in paragraph (2).

(4) The current and projected financial condition of

the industry.

(5) The current market conditions, including level of

competition, consumer demand, market concentration, any

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consolidation trends in the industry and other relevant

characteristics of the market.

(6) Whether the gaming facilities held or to be held

by the person have separate organizational structures or other

independent obligations.

(7) The potential impact of licensure on the projected

future growth and development of the gaming industry in this

Commonwealth and the growth and development of the host

communities.

(8) The barriers to entry into the gaming industry,

including the licensure requirements of the act, and whether the

issuance or holding of a license by the person will operate as a

barrier to new companies and individuals desiring to enter the

market.

(9) Whether the issuance or holding of the license by

the person will adversely impact consumer interests, or whether

the issuance or holding is likely to result in enhancing the

quality and customer appeal of products and services offered by

slot machine licensees to maintain or increase their respective

market shares.

(10) Whether a restriction on the issuance or holding

of an additional license by the person is necessary to encourage

and preserve competition and to prevent monopolization of

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facilities.

(11) Other evidence deemed relevant by the Board.

CHAPTER 423. APPLICATIONS

§ 423.1. General requirements.

(a) For the purposes of this section, a reference to an

applicant includes the applicant’s affiliates, intermediaries,

subsidiaries and holding companies.

(b) An application shall be submitted on forms supplied or

approved by the Board, shall contain all information and

documents required by the Board and shall include the applicable

fees.

(c) The applicant shall file with the application all

supplemental forms required by the Board. The forms require full

disclosure of all details relative to the applicant’s

suitability to conduct business in this Commonwealth under the

act.

(d) Upon request of the Board, the applicant shall further

supplement any information provided in the application. The

applicant shall provide all requested documents, records,

supporting data and other information within the time period

specified in the request, or if no time is specified, within 30

Source: The provisions of this § 421.5 amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

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days of the date of the request. If the applicant fails to

provide the requested information within the required time

period as set forth in the request, the Board may deny the

application.

(e) Information provided to the Board must be true and

complete. If there is any change in the information provided to

the Board, the applicant shall promptly file a written amendment

in a form prescribed by the Board.

(f) The application and amendments thereto and other

specific documents designated by the Board must be sworn to or

affirmed by the applicant before a notary public.

(g) The Board will deny the application of any applicant

that refuses to submit to a background investigation or provide

requested information as required under the act.

(h) An applicant that submits a document to the Board which

is in a language other than English shall also submit an English

translation of the non-English language document. The

translation must include the signature, printed name, address

and telephone number of the translator and a verification by the

translator of the truth and accuracy of the translation. At its

discretion, the Board may accept an English summary of a

document in lieu of a complete translation of the document.

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(i) An application that has been accepted for filing and

the related materials submitted to the Board become the property

of the Board and will not be returned to the applicant.

§ 423.2. Preliminary submission review.

(a) Upon receipt of an application submission, the Board

will review the submission to insure that it contains the

applicable:

(1) Application fee.

(2) Application forms and additional information and

accompanying documentation required by the act or this parte

Board’s regulations governing the specific type of application.

(3) Completed authorization forms for release of

information from federal and state agencies required for the

specific type of application.

(4) For slot machine license applications only, a bond

or letter of credit as required by section 1313(c) of the act

(relating to applicant’s ability to pay license fee).

(b) If an application submission fails to include one or

more of the items in subsection (a), the applicant will be

notified that the application has not been accepted for filing

and the applicant will be given an opportunity to cure the

insufficiency.

Source: The provisions of this § 423.1 amended October 8, 2005, effective September 28, 2005, 35 Pa.B. 5619; amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

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(c) If the applicant fails to cure the insufficiency within

the time period set by the Board, the submission and related

materials will be returned to the applicant.

§ 423.3. Application processing.

(a) Upon a determination that all prerequisites for filing

have been met, the Board will:

(1) Accept the application for filing.

(2) Notify the applicant or the applicant’s attorney,

if any, in writing of the fact that the application has been

accepted for filing and the date of the acceptance for filing.

The Board will also notify the applicant that the acceptance for

filing of the application will not constitute evidence that any

requirement of the act has been satisfied.

(3) Obtain and evaluate information as may be

necessary to determine the qualifications of the applicant and

any matter relating to the application.

(4) Request the Bureau to promptly conduct an

investigation and provide the information necessary to determine

the qualifications of the applicant and any matter relating to

the application.

(5) Request the Pennsylvania State Police to provide a

criminal history background investigation report, determine

employee eligibility consistent with § 435.1 (relating to

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general provisions), conduct fingerprinting, photograph

applicants and perform duties as directed by the Board.

(6) Request the Department to promptly conduct a tax

clearance review.

(7) Request the Department of Labor and Industry to

perform an Unemployment Compensation Tax clearance review and a

Workers Compensation Tax clearance review.

(8) Request any agencies, entities or persons to

conduct investigations or evaluations or to provide information

to the Board, as deemed necessary by the Board.

(b) The Board will keep and maintain a list of all

applicants under this part together with a record of all actions

taken with respect to applicants.

(c) An application submitted under this part and the

information obtained by the Board relating to the application

shall be part of the evidentiary record of the licensing

proceeding. The Board’s decision to issue or deny a license

shall be based solely on the evidentiary record before the

Board.

§ 423.4. Deficient applications.

(a) If an application is found to be deficient, the Board

will notify the applicant of the deficiencies in the application

Source: The provisions of this § 423.3 amended March 18, 2006, effective February 28, 2006, 36 Pa.B. 1347; amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

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and permit the applicant to cure the deficiencies within a time

period prescribed by the Board.

(b) Refusal to provide information as required in

subsection (a) may result in the immediate denial of the

application.

§ 423.5. Application withdrawal.

(a) A request for withdrawal of an application for a

license, permit, certification or registration may be made by

petition to the Board filed at any time prior to issuance by the

Board of its determination with respect to the application.

(b) The petition must set forth the reasons for the

withdrawal.

(c) An applicant may petition for the withdrawal of its

application or an application submitted by one of its

affiliates, intermediaries, subsidiaries or holding companies or

persons or entities required to be qualified under section 1311

of the act (relating to slot machine license application

business entity requirements).

(d) When rendering a decision on a petition for withdrawal,

the Board may set the conditions of withdrawal and may deny or

grant the request with or without prejudice. Source: The provisions of this § 423.4 amended August 27, 2005, effective August 17, 2005, 35 Pa.B. 4828; amended February 4, 2006, effective January 19, 2006, 36 Pa.B. 681; amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

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(1) If a petition for withdrawal is granted with

prejudice, the person or entity whose application has been

withdrawn will not be eligible to apply for a license, permit,

certification or registration with the Board until after

expiration of 5 years from the date of the withdrawal.

(2) If a petition for withdrawal is granted without

prejudice the Board will determine when the person or entity

whose application has been withdrawn may be eligible to apply

for a license, permit, certification or registration.

(e) The Board may convert an incomplete application to a

petition for withdrawal.

(f) Unless the Board otherwise directs, fees or other

payments relating to an application will not become refundable

by reason of the withdrawal. Additionally, the fees and costs

owed to the Board related to the application shall be paid prior

to granting a petition to withdraw.

§ 423.6. License, permit, registration and certification

issuance and Statement of Conditions.

(a) Issuance criteria.

(1) In addition to the criteria contained in the act,

the Board will not issue or renew a license, permit,

Source: The provisions of this § 423.5 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended July 22, 2006, effective June 28, 2006, 36 Pa.B. 3939; amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

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certification or registration unless the Board finds that the

following criteria have been established by the applicant:

(i) The applicant has paid the applicable fees.

(ii) The applicant has fulfilled each condition

set by the Board or contained in the act, including the

execution of a Statement of Conditions.

(iii) The applicant is found suitable consistent

with the laws of the Commonwealth and is otherwise qualified to

be issued a license, certification, permit, registration or

other authorization.

(b) Statement of conditions.

(1) For this subsection, the term ‘‘executive

officer’’ means the individual holding the highest ranking

management position within the entity and who is authorized to

contract on behalf of the entity.

(2) If the Board approves an entity’s application for

a license, certification or registration, or for the renewal of

a license, certification or registration, the Board may require

the executive officer of the entity whose application has been

approved, or other competent individual designated by the entity

in accordance with paragraph (3), to execute a Statement of

Conditions in the manner and form required by the Board.

Execution of the Statement of Conditions shall constitute the

acceptance of each provision contained in the Statement of

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Conditions by both the entity and the executive officer. The

executive officer shall ensure that the entity fully complies

with each provision contained in the Statement of Conditions.

(3) Prior to the issuance of a license, certification

or registration to an entity, the entity shall determine whether

the entity will designate its executive officer or another

competent individual with a direct reporting relationship to its

executive officer to execute the Statement of Conditions on

behalf of both the entity and its executive officer. If the

entity elects to designate another competent individual with a

direct reporting relationship to its executive officer to

execute the Statement of Conditions on behalf of the entity and

its executive officer, the entity shall adopt a resolution

identifying the individual so designated, authorizing that

individual to execute the Statement of Conditions on behalf of

both the entity and its executive officer, and evidencing the

executive officer’s concurrence in that individual’s

designation. A copy of the resolution, certified as true and

correct, shall be provided to the Board and attached to the

Statement of Conditions.

(4) If the Board approves an individual’s application

for a license, permit, certification or registration, or for the

renewal of a license, permit, certification or registration, the

Board may require the individual whose application has been

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approved to execute a Statement of Conditions in the manner and

form required by the Board. The execution of the Statement of

Conditions shall constitute the acceptance of each provision

contained in the Statement of Conditions by the individual. The

individual shall fully comply with each provision contained in

the Statement of Conditions.

(5) Failure to fully comply with any provision

contained in an executed Statement of Conditions shall

constitute a violation of the Statement of Conditions and may

result in the imposition of Board-imposed administrative

sanctions, up to and including revocation, against the

individual to whom the license, permit, certification or

registration was issued, and, in the case of an entity, against

the entity and its executive officer or other designee under §

423.5(b)(3).

§ 423.7. Restriction on application after denial or revocation.

(a) A person whose application has been denied or whose

license, permit, certification or registration has been revoked,

may not apply for a license, permit, certification or

registration for 5 years from the date that the application was

denied or the license, permit, certification or registration was

revoked.


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(b) The 5-year restriction in subsection (a) will not apply

as follows:

(1) To applicants for a slot machine license if the

denial was for reasons other than unsuitability.

(2) If the denial or revocation was based on pending

charges for a disqualifying offense under section 1213 or

section 1518 of the act (relating to license or permit

prohibition; and prohibited acts and penalties), 18 Pa.C.S.

(relating to crimes and offenses) or the criminal laws of any

other jurisdiction and the pending charges do not result in

conviction of the disqualifying offense.

(c) Two years from the date that the application was denied

or the license, permit, certification or registration was

revoked, a person may file a petition for permission to apply

for a license, permit, certification or registration before the

expiration of the 5-year period.

(d) A petition filed under subsection (c) shall be filed in

accordance with § 493.4 (relating to petitions generally).

(e) Petitions filed under subsection (c) must contain:

(1) An explanation of how the conditions that were the

basis for denial or revocation have been corrected or no longer

exist.

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(2) Supporting materials that demonstrate that the

person meets the requirements for a license, permit,

certification or registration.

(3) If the denial or revocation was the result of a

conviction, the petition must include evidence of

rehabilitation, such as:

(i) The nature and seriousness of the offense or

conduct.

(ii) The circumstances under which the offense or

conduct occurred.

(iii) The date of the offense or conduct.

(iv) The age of the applicant when the offense or

conduct was committed.

(v) Whether the offense or conduct was an

isolated or repeated incident.

(vi) Social conditions which may have contributed

to the offense or conduct.

(vii) Evidence of rehabilitation, including good

conduct in prison or in the community, counseling or psychiatric

treatment received, acquisition of additional academic or

vocational schooling, successful participation in correctional

work-release programs, or the recommendation of persons who have

or have had the applicant under their supervision.

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(viii) Evidence that obligations for restitution,

fines and penalties have been met.

(f) If a petition filed under subsection (c) is denied, a

person may not file another petition under subsection (c) for 1

year from the date of the denial of the petition.

§ 423.8. Recommendations for denial.

Where a recommendation for denial of an application for a

license, permit, certification or registration is made, the

applicant for the license, permit, certification or registration

may request a hearing. The hearing will be conducted under the

procedures contained in Chapter 494 (relating to hearing

procedure).

CHAPTER 425. LICENSED ENTITY REPRESENTATIVES

§ 425.1. Registration.

(a) A licensed entity representative shall file a

completed Licensed Entity Registration Form with the Board,

which includes the individual’s name, employer or firm, address,

telephone number and the licensed entity being represented.

(b) A licensed entity representative shall be required to

update its registration information on an ongoing basis.

Source: The provisions of this § 423.7 amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970. Source: The provisions of this § 423.8 amended April 28, 2007, effective March 27, 2007, 37 Pa.B. 1968. Source: The provisions of this § 425.1 amended January 6, 2007, effective December 13, 2006, 37 Pa.B. 21.

90

(c) The Board will maintain a list of licensed entity

representatives. The registration list will be available for

public inspection at the offices of the Board and on the Board's

Internet website.

CHAPTER 427. MANUFACTURER LICENSES

§ 427.1. Manufacturer general requirements.

(a) A manufacturer seeking to manufacture slot machines and

associated equipment for use in this Commonwealth shall apply to

the Board for a manufacturer license.

(b) In accordance with section 1317.1 of the act (relating

to manufacturer licenses), an applicant for or the holder of a

manufacturer license or any of the applicant’s or holder’s

affiliates, intermediaries, subsidiaries or holding companies,

may not apply for or hold a slot machine license or supplier

license.

(c) A licensed manufacturer or a licensed manufacturer

designee may supply or repair any slot machine or associated

equipment manufactured by the licensee.

(d) A licensed manufacturer may contract with a slot

machine licensee or licensed supplier to supply or repair slot

machines or associated equipment manufactured by the

manufacturer licensee.

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(e) Limitations may not be placed on the number of

manufacturer licenses issued or when an application for a

manufacturer license may be filed.

§ 427.2. Manufacturer license applications and standards.

(a) An applicant for a manufacturer license shall submit:

(1) An original and three copies of the Manufacturer

Application and Disclosure Information Form unless otherwise

directed by the Board.

(2) A nonrefundable application fee.

(3) A diversity plan as set forth in section 1325(b)

of the act (relating to license or permit issuance) and Chapter

481 (relating to general provisions), which shall be signed by

the chief executive officer of the applicant.

(4) An application from every key employee and

principal as specified by the Manufacturer Application and

Disclosure Information Form or as determined by the Board.

(5) If applicable, copies of filings required by the

Securities and Exchange Commission during the 2 immediately

preceding fiscal years, including annual reports filed with the

Securities Exchange Commission, under sections 13 or 15(d) of

the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78m and

Source: The provisions of this § 427.1 amended October 8, 2005, effective September 28, 2005, 35 Pa.B. 5619; amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

92

78o(d)), quarterly reports filed with the Securities Exchange

Commission, under sections 13 or 15(d) of the Securities

Exchange Act of 1934, current reports filed with the Securities

Exchange Commission, under sections 13 or 15(d) of the

Securities Exchange Act of 1934, and proxy statements issued by

the applicant.

(6) An affirmation that neither the applicant nor any

of its affiliates, intermediaries, subsidiaries or holding

companies, holds any direct or indirect ownership interest in

any applicant for or holder of a slot machine applicant or

license or supplier license, or employs, directly or indirectly,

any person who satisfies the definition of a principal or key

employee of a slot machine applicant or licensee or supplier

applicant or licensee. In applying this provision to an

applicant for a manufacturer license, the Board will not include

interests that are held by individuals in any of the following

manners:

(i) In mutual funds when the value of the

interest owned does not exceed 1% of the total fair market value

of the applicant or licensee and provided that the mutual fund

is not a nondiversified fund invested primarily in entities

operating in, or connected with, the gaming industry.

(ii) Through defined benefit pension plans.

93

(iii) Through deferred compensation plans

organized and operated under section 457 of the Internal Revenue

Code of 1986 (26 U.S.C.A. § 457).

(iv) In blind trusts over which the holder may

not exercise a managerial control or receive income during the

time period the holder is subject to these provisions.

(v) Through tuition account plans organized and

operated under section 529 of the Internal Revenue Code of 1986

(26 U.S.C.A. § 529).

(vi) Through plans described in section 401(k) of

the Internal Revenue Code of 1986 (26 U.S.C.A. § 401(k)).

(vii) An interest held by a spouse if an action

seeking a divorce and dissolution of marital status has been

initiated in any jurisdiction by either party to the marriage.

(7) A sworn or affirmed statement that the applicant

has developed and implemented internal safeguards and policies

to prevent a violation of section 1513 of the act (relating to

political influence) and a copy the safeguards and policies.

(b) In addition to the materials required under subsection

(a), an applicant for a manufacturer license shall:

(1) Promptly provide information requested by the

Board relating to the manufacturer’s application or regulation

and cooperate with the Board in investigations, hearings, and

enforcement and disciplinary actions.

94

(2) Comply with the general application requirements

in Chapters 421 and 423 (relating to general provisions; and

applications).

(3) Demonstrate that the applicant has the ability to

manufacture, build, rebuild, repair, fabricate, assemble,

produce, program, design or otherwise make modifications to slot

machines or associated equipment which meet one or more of the

following criteria:

(i) Are specifically designed for use in the

operation of a slot machine.

(ii) Are needed to conduct an authorized game.

(iii) Have the capacity to affect the outcome of

the play of a game.

(iv) Have the capacity to affect the calculation,

storage, collection, or control of gross terminal revenue.

(c) An applicant for a manufacturer license will be

required to reimburse the Board for any additional costs, based

on the actual expenses incurred by the Board, in conducting the

background investigation.

(d) In determining whether an applicant is suitable to be

licensed as a manufacturer under this section, the Board will

consider the following:

(1) The financial fitness, good character, honesty,

integrity and responsibility of the applicant.

95

(2) If the principals of the applicant individually

qualify under the standards of section 1317.1 of the act

(relating to manufacturer license).

(3) The integrity of financial backers.

(4) The suitability of the applicant and principals

and key employees of the applicant based on the satisfactory

results of:

(i) The background investigation of principals

and key employees.

(ii) A current tax clearance review performed by

the Department.

(iii) A current Unemployment Compensation Tax

clearance review and a Workers Compensation Tax clearance review

performed by the Department of Labor and Industry.

§ 427.3. Manufacturer license term and renewal.

(a) A manufacturer license or renewal will be valid for 1

year from the date on which the license or renewal is approved

by the Board.

(b) A renewal application and renewal fee shall be filed at

least 6 months prior to the expiration of the current license.

Source: The provisions of this § 427.2 amended October 8, 2005, effective September 28, 2005, 35 Pa.B. 5619; amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970. Source: The provisions of this § 427.3 amended April 28, 2007, effective March 15, 2007, 37 Pa.B. 1970.

96

(c) A manufacturer license for which a completed renewal

application and fee has been received by the Board will continue

in effect for an additional 6-month period or until acted upon

by the Board, whichever occurs first.

§ 427.4. Alternative manufacturer licensing standards.

(a) If an applicant for a manufacturer license holds a

similar license in another jurisdiction in the United States,

the applicant may submit a written request with its application

required under § 427.2(a) (relating to manufacturer licensing

standards and application) for the Board to adopt an abbreviated

licensing process under section 1319 of the act (relating to

alternative manufacturer licensing standards) to review a

manufacturer license application.

(b) The Board may use the abbreviated process if:

(1) The Board determines, after investigation, that

the licensing standards in the jurisdiction in which the

applicant is licensed are similarly comprehensive, thorough and

provide equal, if not greater, safeguards as provided in the act

and that granting the request is in the public interest.

(2) The applicant has provided a copy of its most

recent application or renewal for the similar license in the

other jurisdiction and a copy of the license or the order issued

by the other jurisdiction granting the license.

97

(3) The applicant has no administrative or enforcement

actions pending in another jurisdiction or the applicant has

adequately disclosed and explained the action to the

satisfaction of the Board.

(4) There are no pending or ongoing investigations of

possible material violations by the applicant in another

jurisdiction or the applicant has adequately disclosed and

explained the investigation to the satisfaction of the Board.

(c) This section may not be construed to waive fees

associated with obtaining a license through the application

process in this Commonwealth.

§ 427.5. Responsibilities of a manufacturer.

(a) A holder of a manufacturer license shall have a

continuing duty to:

(1) Provide any information requested by the Board

relating to the manufacturer’s licensing or regulation;

cooperate with the Board in investigations, hearings, and

enforcement and disciplinary actions; and comply with all

conditions, restrictions, requirements, orders and rulings of

the Board in accordance with the act.

(2) Report a change in circumstances that may render

the holder of a manufacturer license ineligible, unqualified or


98

unsuitable to hold a license under the standards and

requirements of the act and of this part.

(3) Provide a copy of SEC filings listed in §

427.2(a)(5) (relating to manufacturer licensing standards and

application) that are filed after the date of issuance of its

license. The copy shall be submitted no later than 30 days

after the date of filing with the SEC.

(b) An employee of a licensed manufacturer whose duties of

employment or incidental activities related to employment

require the employee to be on the gaming floor or in a

restricted area shall be required to obtain an occupation permit

under § 435.4 (relating to occupation permit).

(c) A slot machine licensee may service or repair slot

machines or associated equipment at its licensed facility

pursuant to a written agreement between the slot machine

licensee and the manufacturer licensee that provided the slot

machines or associated equipment at the licensed facility.

(d) A slot machine licensee may perform routine maintenance

directly related to the availability of slot machines for play,

customer service or a clean and gracious playing environment.

The routine maintenance includes installation or replacement of

the following: batteries, hardware, including hinges, screws,

bolts and custom handles, light bulbs, locks on slot machines

and slot cash storage boxes, including the rekeying of the

99

locks, printers, exclusive of printer software and paper stock.

Routine maintenance also includes external cleaning and the

clearing of paper, bill and coin jams which do not require

removal or dismantling of the mechanisms.

CHAPTER 429. MANUFACTURER DESIGNEES § 429.1. Manufacturer designee general requirements.

(a) A manufacturer designee seeking to supply or repair

slot machines and associated equipment for use in this

Commonwealth shall apply to the Board for a manufacturer

designee license.

(b) In accordance with section 1317.1 of the act (relating

to manufacturer licenses), an applicant for or the holder of a

manufacturer designee license or any of the applicant’s or

holder’s affiliates, intermediaries, subsidiaries or holding

companies, may not apply for or hold a slot machine license or

supplier license.

(c) A licensed manufacturer designee may supply or repair

slot machines or associated equipment manufactured by a

manufacturer with whom the manufacturer designee has an

agreement or has executed a contract authorizing the

manufacturer designee to do so.


100

(d) Limitations may not be placed on the number of

manufacturer designee licenses issued or when an application for

a manufacturer designee license may be filed.

§ 429.2. Manufacturer designee license applications and

standards.

(a) An applicant for a manufacturer designee license shall

submit:

(1) An original and three copies of the Manufacturer

Designee Application and Disclosure Information Form unless

otherwise directed by the Board.




481 (relating to general provisions).

(4) An application from every key employee under §

435.2 (relating to key employee license) and principal under

Chapter 433 (relating to principal licenses) as specified by the

Manufacturer Designee Application and Disclosure Information

Form.

(5) If applicable, copies of all filings required by

the Securities and Exchange Commission during the 2 immediately

preceding fiscal years, including all annual reports filed with


101

the Securities Exchange Commission, under sections 13 or 15(d)

of the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78m and

78o-6), quarterly reports filed with the Securities Exchange

Commission, under sections 13 or 15(d) of the Securities

Exchange Act of 1934, current reports filed with the Securities

Exchange Commission, under sections 13 or 15(d) of the

Securities Exchange Act of 1934, and proxy statements issued by

the applicant.


of its affiliates, intermediaries, subsidiaries or holding

companies, holds any direct or indirect ownership interest in

any applicant for or holder of a slot machine license or

supplier license, or employs, directly or indirectly, any person

who satisfies the definition of a principal or key employee of a

slot machine applicant or licensee or supplier applicant or

licensee. In applying this provision to an applicant for a

manufacturer designee license, the Board will not include

interests that are held by individuals in any of the following

manners:



of the applicant or licensee and provided that the mutual fund

is not a nondiversified fund invested primarily in entities

operating in, or connected with, the gaming industry.

102




Code of 1986 (26 U.S.C.A. § 457).


not exercise any managerial control or receive income during the



operated under section 529 of the Internal Revenue Code of 1986

(26 U.S.C.A. § 529).


the Internal Revenue Code of 1986 (26 U.S.C.A. § 401(k)).







political influence) and a copy of the safeguards and policies.


(a), an applicant for a manufacturer designee license shall:


Board relating to its application or regulation and cooperate

103

with the Board in investigations, hearings, and enforcement and

disciplinary actions.



applications).

(c) An applicant for a manufacturer designee license will

be required to reimburse the Board for additional costs, based



(d) In determining whether an applicant will be licensed as

a manufacturer designee under this section, the Board will




(2) If all principals of the applicant are

individually eligible and suitable under the standards of

section 1317.1 of the act (relating to manufacturer licenses).

(3) The integrity of all financial backers.

(4) The suitability of the applicant and all

principals and key employees of the applicant based on the

satisfactory results of:

(i) A background investigation of all principals

and key employees or their equivalent in other jurisdictions.

104


the Department.




§ 429.3. Additional manufacturer designee licenses.

(a) A licensed manufacturer designee whose license is in

good standing may apply for an additional manufacturer designee

license for a different licensed manufacturer by submitting:

(1) An original and three copies of the Additional

Manufacturer Designee Application and Disclosure Information

Form unless otherwise directed by the Board.


(b) An applicant for an additional manufacturer designee

license shall also comply with the requirements of § 429.2(b)(1)

and (2) and (c) (relating to manufacturer designee license

applications and standards).

§ 429.4. Manufacturer designee license term and renewal.

Source: The provisions of this § 429.2 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1862. Source: The provisions of this § 429.3 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1862.

105

(a) A manufacturer designee license or renewal shall be

valid for 1 year from the date on which the license or renewal

is approved by the Board.



(c) A manufacturer designee license for which a completed

renewal application and fee has been received by the Board will

continue in effect for an additional 6-month period or until

acted upon by the Board, whichever occurs first.

§ 429.5. Responsibilities of a manufacturer designee.

(a) A holder of a manufacturer designee license shall have

a continuing duty to:

(1) Provide information requested by the Board

relating to licensing or regulation; cooperate with the Board in


actions; and comply with conditions, restrictions, requirements,

orders and rulings of the Board in accordance with the act.

(2) Report a change in circumstances that may render a

holder of a manufacturer or manufacturer designee license

ineligible, unqualified or unsuitable to hold a license under

the standards and requirements of the act and of this part.


106

(3) Provide a copy of Securities and Exchange

Commission filings listed in § 427.2(a)(5) that are filed after

the date of issuance of its license. The copy shall be submitted

no later than 30 days after the date of filing with the

Securities and Exchange Commission.

(b) A holder of a manufacturer designee license shall

establish a place of business in this Commonwealth.

(c) An employee of a licensed manufacturer designee whose

duties of employment or incidental activities related to

employment require the employee to be on the gaming floor or in

a restricted area shall be required to obtain an occupation

permit under § 435.3 (relating to occupation permit).

§ 429.6. Manufacturer designee as agent.

(a) Notwithstanding any provision to the contrary in a

contract between a licensed manufacturer and a licensed

manufacturer designee, the licensed manufacturer designee shall

be deemed to be an agent of the licensed manufacturer for the

purposes of imposing liability for any act or omission of the

licensed manufacturer designee in violation of the act or this

part.

(b) Notwithstanding any provision to the contrary in a

contract between a licensed manufacturer and a licensed


107

manufacturer designee, the licensed manufacturer shall be

jointly and severally liable for any act or omission by the

licensed manufacturer designee in violation of the act or this

part, regardless of actual knowledge by the licensed

manufacturer of the act or omission.

§ 429.7. Manufacturer designee agreements.

(a) Agreements between a licensed manufacturer and a

licensed manufacturer designee must be submitted to the Bureau

of Licensing for approval. An agreement between a licensed

manufacturer and a licensed manufacturer designee may not become

effective and a manufacturer designee license will not be issued

until the Bureau of Licensing has reviewed and approved the

terms and conditions of the agreement.

(b) Amendments to agreements between a licensed

manufacturer and a licensed manufacturer designee shall be

submitted to the Bureau of Licensing for approval at least 30

days prior to the effective date of the proposed amendment. The

amendment may not become effective until the Bureau of Licensing

has reviewed and approved the terms and conditions of the

amendment.

(c) An agreement between a licensed manufacturer and a

licensed manufacturer designee submitted for Bureau of Licensing


108

review and approval must enumerate with specificity the

responsibilities of the licensed manufacturer and the licensed

manufacturer designee.

(d) Agreements must contain a provision that describes with

particularity any terms related to compensation of the licensed

manufacturer or the licensed manufacturer designee.

CHAPTER 431. SUPPLIER LICENSES

§ 431.1. Supplier general requirements.

(a) A supplier seeking to sell, lease, offer or otherwise

provide, distribute or service slot machines or associated

equipment to a slot machine licensee within this Commonwealth

shall apply to the Board for a supplier license.

(b) In accordance with sections 1317 and 1317.1 of the act

(relating to supplier licenses; and manufacturer licenses), an

applicant for or the holder of a supplier license or any of the

applicant’s or holder’s affiliates, intermediaries, subsidiaries

or holding companies, may not apply for or hold a slot machine

license or a manufacturer license.

(c) Limitations may not be placed on the number of supplier

licenses issued or when an application for a supplier license

may be filed.


109

§ 431.2. Supplier license applications and standards.

(a) An applicant for a supplier license shall submit:

(1) An original and three copies of the Supplier

Application and Disclosure Information Form for the applicant

and each of the applicant’s affiliated entities unless otherwise





481 (relating to general provisions).

(4) An application from every key employee and each

natural person who is a principal as specified by the Supplier

Application and Disclosure Information Form or as determined by

the Board.

(5) If applicable, copies of filings required by the

SEC during the 2 immediately preceding fiscal years, including

all annual reports filed under section 13 or section 15(d) of

the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78m and

78o(d)), quarterly reports filed under section 13 or section

15(d) of the Securities Exchange Act of 1934, current reports

filed under section 13 or section 15(d) of the Securities


110

Exchange Act of 1934, and proxy statements issued by the

applicant.


of its affiliates, subsidiaries, intermediaries and holding

companies holds any direct or indirect ownership interest in any

applicant for or holder of a manufacturer license or slot

machine licensee, or employs, directly or indirectly, any person

who satisfies the definition of a principal or key employee of a

manufacturer or slot machine applicant or licensee. In applying

this provision to an applicant for a supplier license, the Board

will not include interests that are held by individuals in any

of the following manners:



of the manufacturer or slot machine applicant or licensee and

provided that the mutual fund is not a nondiversified fund

invested primarily in entities operating in, or connected with,

the gaming industry.




Code of 1986 (26 U.S.C.A. § 457).

111


not exercise any managerial control or receive income during the



operated under section 529 of the Internal Revenue Code (26

U.S.C.A. § 529).


the Internal Revenue Code (26 U.S.C.A. § 401(k)).







political influence) and a copy the safeguards and policies.


(a), an applicant for a supplier license shall:


Board relating to the supplier’s application or regulation and





applications).

112

(3) Demonstrate that the applicant has or will

establish a principal place of business in this Commonwealth.

(c) An applicant for a supplier license shall be required

to reimburse the Board for additional costs, based on the actual

expenses incurred by the Board, in conducting the background

investigation.

(d) In determining whether an applicant is suitable to be

licensed as a supplier under this section, the Board will




(2) If the principals of the applicant individually

qualify under the standards of section 1317 of the act.

(3) The integrity of financial backers.

(4) The suitability of the applicant and the

principals and key employees of the applicant based on the

satisfactory results of:

(i) A background investigation of the principals

and key employees.


the Department.

113




§ 431.3. Supplier license term and renewal.

(a) A supplier license or renewal will be valid for 1 year

from the date on which the license or renewal is approved by the

Board.



(c) A supplier license for which a completed renewal


in effect for an additional 6-month period or until acted upon

by the Board, whichever occurs first.

§ 431.4. Responsibilities of a supplier.

(a) Within 1 year of the Board’s issuance of a supplier

license, the supplier shall establish and maintain a principal

place of business in this Commonwealth.

(b) At the time of licensure, a supplier shall have assets

or available lines of credit to support the sale, financing,

servicing or repair of all slot machines to be placed in service


114

or repaired by the supplier. The assets and available lines of

credit shall be from a source independent of slot machine

manufacturers and licensed gaming entities. Notwithstanding the

forgoing, a licensed manufacturer may extend financing or

payment terms to a licensed supplier, at prevailing market rates

and terms, for the acquisition or leasing of slot machines, to

be secured by the slot machines sold, leased or transferred.

(c) A supplier shall submit to the Board for review any

agreements with a licensed manufacturer or with a slot machine

licensee and detailed business plans. The Board’s review may

include, but not be limited to, financing arrangements,

inventory requirements, warehouse requirements, warehouse space,

technical competency, compensative agreements and other terms or

conditions to ensure the financial independence of the licensed

supplier from any licensed manufacturer or licensed gaming

entity.

(d) A holder of a supplier license shall have a continuing

duty to:




actions; and comply with the conditions, restrictions,

requirements, orders and rulings of the Board in accordance with

the act.

115


the holder of a supplier license ineligible, unqualified or

unsuitable to hold a license under the standards and

requirements of the act and of this part.

(3) Provide a copy of SEC filings listed in §

427.2(a)(5) (relating to manufacturer licensing standards and

application) that are filed after the date of issuance of its

license. The copy shall be submitted no later than 30 days

after the date of filing with the SEC.

(e) An employee of a licensed supplier whose duties of

employment or incidental activities related to employment allow

the employee access to slot machines or associated equipment or

require the employee to be on the gaming floor or in a

restricted area shall be required to obtain an occupation permit

under § 435.3 (relating to occupation permit).

(f) A slot machine licensee may service or repair slot

machines or associated equipment at its licensed facility

pursuant to a written agreement between the licensed gaming

entity and the supplier licensee that provided the slot machines

or associated equipment for use or play at the licensed

facility.

(g) A slot machine licensee may perform routine maintenance

directly related to the availability of slot machines for play,

customer service or a clean and gracious playing environment.

116

The routine maintenance includes installation or replacement of

the following: batteries, hardware, including hinges, screws,

bolts and custom handles, light bulbs, locks on slot machines

and slot cash storage boxes, including the rekeying of the

locks, printers, exclusive of printer software and paper stock.

Routine maintenance also includes external cleaning and the

clearing of paper, bill and coin jams which do not require

removal or dismantling of the mechanisms.

(h) A licensed manufacturer or a manufacturer’s designee

may supply, install, service or repair slot machines or

associated equipment manufactured by the licensed manufacturer.

§ 431.5. Supplier log books.

(a) A supplier licensee shall maintain a log book to

register all individuals who enter the licensee’s principal

place of business and each physical facility utilized by the

licensee to house inventory, replacement parts, supplies,

transportation or delivery equipment.

(b) The supplier licensee shall record or cause to be

recorded in the log book the following:

(1) The date, entrance time and departure time of each

individual.


117

(2) The name of each individual entering the place of

business or physical facility and who they represent.

(3) The signature of each individual.

(4) The purpose for the visit.

(5) The individual’s Board license, permit,

certification or registration number, if applicable.

(c) Licensed, permitted or registered employees of a

supplier are not required to register in the log book.

(d) Each log book required by this section shall be

maintained at the entrance of the location to which it pertains

and shall be made readily accessible for examination and

inspection upon the demand of any agent, employee or

representative of the Board, the Department of Revenue or the


CHAPTER 433. PRINCIPAL LICENSES

§ 433.101. Definitions.

The following words and terms, when used in this chapter,

have the following meanings, unless the context clearly

indicates otherwise:

Applicant – A person that has submitted an application to

the Board for a slot machine license, manufacturer license,


118

manufacturer designee license, supplier license, management

company license or junket enterprise license.

Director – A director of a corporation or any person

performing similar functions with respect to an entity, whether

incorporated or unincorporated.

Entity – A person, other than an individual.

Holding company – A person, other than an individual, that,

directly or indirectly, owns, has the power or right to control

or has the power or right to vote 20% or more of the outstanding

voting securities of a corporation or other entity. A holding

company indirectly has, holds or owns any such power, right or

security if it does so through an interest in a subsidiary or

successive subsidiaries.

Indirect ownership interest – An ownership interest in an

entity that has a direct ownership interest in an applicant or

licensee, or a direct ownership interest in an entity that has

an ownership interest in an applicant or licensee through one or

more intervening entities.

Individual – A natural person.

Licensee – A person who has been issued a slot machine

license, manufacturer license, manufacturer designee license,

supplier license, management company license or junket

enterprise license.

119

Lending institution – A person who has been issued a

license to lend money by a state or federal agency or a person

who satisfies the definition of “qualified institutional buyer”

under to 17 C.F.R. § 230.144a (relating to private resales of

securities to institutions).

Officer - A president, chief executive officer, chief

operating officer, secretary, treasurer, principal legal

officer, principal compliance officer, principal financial

officer, comptroller, principal accounting officer, chief

engineer or technical officer of a manufacturer, or principal

slot operations officer of a slot machine licensee and any

person routinely performing corresponding functions with respect

to an entity whether incorporated or unincorporated.

Principal affiliate – An intermediary or holding company of

an applicant or licensee.

Principal entity – An entity that meets the definition of

principal in section 1103 of the act (relating to definitions)

or is otherwise required to be licensed as a principal and is

not an intermediary or holding company of an applicant or

licensee.

Private investment fund – An entity that meets the

definition of “investment company” under Section 3(a)(1) of the

Investment Company Act of 1940 (15 U.S.C.A. 80a-3(a)(1)), but is

120

otherwise exempt from the definition of “investment company”

under Section 3(c)(7) of the Investment Company Act of 1940.

Registered investment adviser – An investment adviser that

has registered with the Securities and Exchange Commission (SEC)

under the Investment Advisers Act of 1940 (15 U.S.C.A. §§ 80b-1

– 80b-21).

Registered investment company – An investment company that

has registered with the SEC under to the Investment Company Act

of 1940 (15 U.S.C.A. §§ 80a-1 – 80a-64).

Voting security – A security or other interest which

entitles the owner to vote for the election of:

(i) A director of a corporation.

(ii) A person performing functions similar to a director

with respect to an organization, whether incorporated or

unincorporated.

§ 433.102. Directors or officers.

(a) Each officer and director of an applicant or licensee

shall be licensed as a principal.

(b) Each officer and director of an intermediary,

subsidiary or holding company of a slot machine applicant or

licensee shall be licensed as a principal.


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(c) Each officer and director of an intermediary or holding

company of a licensed supplier, licensed manufacturer, licensed

manufacturer designee, licensed junket enterprise or licensed

management company shall be licensed as a principal.

(d) Notwithstanding subsection (b), an officer or director

of a publicly traded intermediary or holding company of a slot

machine applicant or licensee, who is not a member of the audit

committee, may request that the Board waive his requirement to

be licensed as a principal if he is not actively involved in the

affairs of the slot machine applicant or licensee. The waiver

request shall be submitted on a Principal/Key Employee Waiver

Form, and require that the officer certify that he is not

actively involved in the affairs of the slot machine applicant

or licensee.

(e) Notwithstanding subsection (c), an outside director of

an publicly traded intermediary or holding company of a licensed

supplier, licensed manufacturer, licensed manufacturer designee,

licensed junket enterprise or licensed management company who is

not a member of the audit committee of the intermediary or

holding company may not be licensed as a principal unless the

Board determines that the licensure of the individual is

necessary to protect the integrity of gaming in this

Commonwealth.

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(f) Notwithstanding subsection (c), an officer of a

publicly traded intermediary or holding company of a licensed

supplier, licensed manufacturer, licensed manufacturer designee,

licensed junket enterprise or licensed management company may

request that the Board waive his requirement to be license as a

principal if he is not actively involved in the affairs of the

applicant or licensee. The waiver request shall be submitted on

a Principal/Key Employee Waiver Form and shall require that the

officer certify that he is not actively involved in the affairs

of the applicant or licensee.

§ 433.103. Individual ownership.

(a) An individual who has a direct ownership interest in,

or has a right to any profit, distribution or benefit directly

from, an applicant or licensee shall be licensed as a principal.

(b) An individual who, indirectly or directly, has the

power to control or direct the management or policies of an

applicant or licensee shall be licensed as a principal.

(c) An individual who has a direct ownership interest in,

or has a right to any profit, distribution or benefit directly

from, an intermediary or holding company of a slot machine



123

(d) An individual that has a 1% or greater indirect

ownership interest in an applicant or licensee shall be licensed

as a principal. An ownership interest that is held indirectly

by an individual through one or more intervening entities will

be determined by successive multiplication of the ownership

percentages for each link in the vertical chain.

(e) Notwithstanding any provision to the contrary in this

section, an individual who holds less than 5% of the voting

securities of an applicant or licensee or an intermediary or

holding company of an applicant or licensee that is a publicly

traded company is not required to be licensed as a principal.

(f) Each individual who is a grantor, trustee or

beneficiary of a trust that is required to be licensed as a

principal under this chapter shall be licensed as a principal.

(g) The Board may require any individual who has a

financial interest in, or receives an economic benefit from, an

applicant or licensee to be licensed as a principal.

§ 433.104. Entity ownership.

(a) An intermediary, subsidiary or holding company of an



124

(b) An entity that, indirectly or directly, has the power

to control or direct the management or policies of an applicant

or licensee shall be licensed as a principal.

(c) An entity that has a direct ownership interest in, or

has a right to any profit, distribution or benefit directly

from, an applicant or licensee shall be licensed as a principal.

(d) An entity that has a direct ownership interest in, or

has a right to any profit, distribution or benefit directly

from, an intermediary, subsidiary or holding company of a slot

machine applicant or licensee, shall be licensed as a principal.

(e) An entity that has an indirect ownership interest of 5%

or greater in an applicant or licensee shall be licensed as a

principal. An ownership interest that is held indirectly by an

entity through one or more intervening entities will be

determined by successive multiplication of the ownership

percentages for each link in the vertical chain.

(f) Notwithstanding subsection (e), a private investment

fund, including its feeder funds, that has an indirect ownership

interest in an applicant or licensee, shall be exempt from

obtaining a principal license if all of the following apply:

(1) Neither the private investment fund, nor the

investors in the private investment fund have any voting rights

or any other power to control or to influence the applicant or

licensee.

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(2) At least 20% of the investors in the private

investment fund are “institutional investors” as defined in §

401.4 (relating to definitions).

(3) No investor in the private investment fund has a

right to redeem his interest in the private investment fund

within 2 years of the purchase of the interest.

(4) Each individual and entity that has the ability to

control the management of the private investment fund is

licensed as a principal.

(5) The private investment fund agrees to provide the

Board with any information the Board deems necessary to evaluate

the integrity of the private investment fund and its investors,

and their compliance with the provisions of this section.

Information provided to the Board shall be confidential.

(6) Each individual required to be licensed as a

principal in paragraph (4) shall as part of his principal

license application sign a notarized statement affirming, at a

minimum, the following:

(i) The private investment fund’s investment in

the applicant or licensee will not violate any applicable United

States, Commonwealth of Pennsylvania or international laws and

regulations, including anti-money laundering regulations or

conventions, the Internal Revenue Code of 1986, the Employee

Retirement Income Security Act of 1974, the Securities Act of

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1933, the Securities Exchange Act of 1934, the Investment

Company Act of 1940 and the Investment Advisers Act of 1940.

(ii) To his best knowledge, no investor in the

private investment fund:

(A) Holds an interest in the private

investment fund in contravention of any applicable United

States, Commonwealth of Pennsylvania or international laws and

regulations, including anti-money laundering regulations or

conventions, the Internal Revenue Code of 1986, the Employee

Retirement Income Security Act of 1974, the Securities Act of

1933, the Securities Exchange Act of 1934, the Investment

Company Act of 1940 and the Investment Advisers Act of 1940.

(B) Is directly or indirectly affiliated

with, a prohibited country, territory, individual or entity on

the List of Specially Designated Nationals and Blocked Persons

maintained by the U.S. Treasury Department’s Office of Foreign

Asset Control.

(C) Is currently charged with or is under

indictment for any felony or gambling offense in any

jurisdiction.

(D) Has been convicted of a felony where 15

years have not elapsed from the date of expiration of the

sentence for the offense.

127

(g) A private investment fund that does not qualify for the

exemption under subsection (f) solely on the basis that it fails

to satisfy paragraph (3), may still qualify for an exemption

from licensure if the private investment fund satisfies all of

the other conditions under subsection (f) and its indirect

ownership interest in the applicant or licensee is less than

10%.

(h) Notwithstanding any provision to the contrary, the

Board may require any entity that has a financial interest in,

or receives any economic benefit from, an applicant or licensee

to be licensed as a principal.

§ 433.105. Institutional investors.

(a) Notwithstanding any provision to the contrary in this

chapter, an institutional investor that owns less than 15% of

the outstanding voting securities of a publicly traded

intermediary or holding company of an applicant for or holder of

a manufacturer license, manufacturer designee license, supplier

license, management company license or junket enterprise license

shall not be required to be licensed as a principal if the

following conditions are satisfied:

(1) The institutional investor or the applicant or

licensee files a notice with the Board containing a description

of the institutional investor’s interests; and

128

(2) The institutional investor has filed a Schedule

13G with the Security and Exchange Commission, and the

institutional investor continues to be eligible to file the

Schedule 13G.

(b) Notwithstanding any provision to the contrary in this

chapter, an institutional investor that owns less than 10% of

the outstanding voting securities of an intermediary or holding

company of a slot machine licensee or applicant shall be

eligible to be receive a waiver from the requirements of

licensure from the Board by filing a Principal Waiver-Entity

Form. The waiver request must include, at a minimum, a

certification by the institutional investor stating that the

institutional investor has no present involvement in, and no

intention of influencing or affecting the affairs of, the slot

machine applicant or licensee or an intermediary or holding

company of the slot machine applicant or licensee and will give

the Board 30 days notice if the institutional investor intends

to do so.

(c) Notwithstanding subsection (b), an institutional

investor that has been granted a waiver shall be permitted to

vote on matters put to the vote of the outstanding security

holders.

(d) A holding company of an institutional investor may file

a notice or waiver request on behalf of its institutional

129

investor subsidiaries provided that such holding company does

not own more than 5% or more of the securities of the

intermediary or holding company of the applicant or licensee.

(e) A registered investment adviser or a holding company of

a registered investment adviser may file a notice or waiver

request, when permitted, on behalf of the registered investment

companies that hold securities beneficially owned by the

registered investment adviser.

§ 433.106. Lenders and underwriters.

(a) Each lender of a slot machine applicant or licensee

shall be licensed as a principal.

(b) Notwithstanding subsection (a), a lender that is a bank

or lending institution which makes a loan to a slot machine

applicant or licensee in the ordinary course of business shall

not be required to be licensed as a principal. The Board may

require a bank or lending institution to provide information or

other assurances in order to verify its eligibility for this

exemption.

(c) An underwriter that acquires the securities of a slot

machine applicant or licensee shall be licensed as a principal.

Source: The provisions of these §§ 433.104 and 433.105 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841. Source: The provisions of this § 433.105 amended May 19, 2007, effective April 9, 2007, 37 Pa.B. 2292.

130

(d) An underwriter or lender of an intermediary, subsidiary

or holding company of a slot machine applicant or licensee shall

be required to be licensed as a principal if the Board

determines that the suitability of the underwriter or lender is

at issue and is necessary to consider a pending application for

a slot machine license.


section, the Board may require the licensure of any lender or

underwriter of a licensee or any holding or intermediary company

or subsidiary of a licensee to produce any information,

documentation and assurances concerning the lender or

underwriter if the Board has probable cause to believe that the

lender or underwriter would not satisfy the character

requirements of section 1310(a) of the act (relating to slot

machine license application character requirements).

§ 433.107. Trusts.

(a) A trust or similar business entity that holds a direct

ownership interest in an applicant or licensee shall be licensed

as a principal.

(b) A trust or similar business entity that holds a 1% or

greater indirect ownership interest in an applicant or licensee

shall be licensed as a principal. An ownership interest that is

held indirectly by an entity through one or more intervening

131

entities will be determined by successive multiplication of the

ownership percentages for each link in the vertical chain.

(c) A trust or similar business entity that receives any

payment, percentage or share of revenue, profits or receipts

directly from an applicant or licensee shall be licensed as a

principal.

(d) A trust or similar business entity will not be issued a

principal license unless each trustee, grantor and beneficiary,

including a minor child beneficiary, has been granted a

principal license.


section, a trust is not required to be licensed as a principal

if the holdings of the trust consist of less than 5% of the

voting securities of a publicly traded company.

§ 433.108. Principal applications.

(a) An individual required to be licensed as a principal

shall file a completed Multi Jurisdictional Personal History

Disclosure Form and the Pennsylvania Supplement to the Multi

Jurisdictional Personal History Disclosure Form and submit the

applicable application fee.

Source: The provisions of these §§ 433.106 and 433.107 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

132

(b) A principal entity required to be licensed as a

principal shall file a completed Principal Entity Form and

submit the applicable application fee.

(c) A principal affiliate shall apply for the principal

license as if were itself applying for the slot machine license,

manufacturer license, manufacturer designee license, supplier

license, management company license or junket enterprise

license.

(d) In addition to the materials required under subsections

(a) or (b), an applicant for a principal license shall:


Board relating to the principals’ application or regulation and





applications).

§ 433.109. Principal license term and renewal.

133

(a) A principal license or renewal shall be valid for 1

year from the date on which the license or renewal is approved

by the Board.



(c) A principal license for which a completed renewal


in effect until the Board sends written notification to the

holder of the principal license that the Board has approved or

denied the license.

CHAPTER 435. EMPLOYEES

§ 435.1. General provisions.

(a) An individual seeking a key employee license,

occupation permit, or nongaming employee registration shall

apply to the Board as required by this chapter.

(b) In addition to the materials required under sections §§

435.2, 435.3 and 435.5 (relating to key employee license;

occupation permit; and nongaming employee registration), an

applicant shall:



Source: The provisions of these §§ 433.108 and 433.109, amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

134





applications).

(c) An individual who receives a license, permit or

registration under this part shall have the continuing duty to

report to the Board an arrest, charge, indictment or conviction

for an offense under 18 Pa.C.S. (relating to crimes and

offenses), or an offense under 75 Pa.C.S. § 3802 (relating to

driving under influence of alcohol or controlled substance) or

of comparable offenses in other states or foreign jurisdictions.

(d) The holder of a key employee license, occupation

permit, or nongaming employee registration shall provide an

updated photograph at the request of the Board.

(e) An individual may not be employed in this Commonwealth

by an applicant for or holder of a license, certification or

registration under this part in any capacity unless the

individual is a citizen of the United States or can demonstrate

that he holds a current and valid work authorization and is not

restricted from working in the capacity for which employment is

sought or held. Authorization to work in the United States may

be demonstrated by submitting one of the following:

(1) A permanent resident alien card.

135

(2) A temporary employment authorization card.

(3) A document which the Board deems to be sufficient

evidence or authorization.

(f) A license or permit will not be issued to an individual

who has been convicted of a felony or gambling offense in any

jurisdiction unless 15 years have elapsed from the date of

expiration of the sentence for the offense.

(g) When considering an application for a registration from

an individual who has been convicted of a felony or gaming

offense in any jurisdiction or an application for a license or

permit form an individual who has been convicted of a felony or

gaming offense in any jurisdiction where 15 years have elapsed

from the date of expiration of the sentence for the offense, the

Board will consider:

(1) The nature and duties of the applicant’s position

with the licensed entity.

(2) The nature and seriousness of the offense or

conduct.

(3) The circumstances under which the offense of

conduct occurred.

(4) The age of the applicant when the offense or

conduct was committed.

(5) Whether the offense or conduct was an isolated or

a repeated incident.

136

(6) Evidence of rehabilitation, including good conduct

in the community, counseling or psychiatric treatment received

and the recommendation of persons who have substantial contact

with the applicant.

(h) An individual who holds a license or permit may not

wager at any licensed facility in this Commonwealth.

(i) A registrant or employee who is not required to obtain

a license or a permit may not wager at the licensed facility in

which the registrant or employee is employed.

(j) A licensed, permitted or registered employee shall

wait at least 30 days following the date that the employee

either leaves employment with a slot machine licensee or is laid

off or terminated from employment with a slot machine licensee

before the employee may wager at the licensed facility in which

the employee was formerly employed.

(k) An individual required to obtain a license or permit

by this part shall demonstrate that he is current and not in

arrears on any financial obligation owed to this Commonwealth or

any subdivision thereof, including court-ordered child-support

payments.

§ 435.2. Key employee license.

Source: The provisions of this § 435.1 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended July 22, 2006, effective June 28, 2006, 36 Pa.B. 3943; amended July 22, 2006, effective June 28, 2006, 36 Pa.B. 3939; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

137

(a) An applicant for a key employee license from the Board

shall submit:

(1) An original and three copies of the Multi-

jurisdictional Personal History Form and the Principal/Key

Employee Form – Pennsylvania Supplement to the Multi-

jurisdictional Personal History Disclosure Form unless otherwise




(a), an applicant for a key employee license shall:

(1) Promptly provide any information requested by the






applications).

(c) In addition to the information under subsections (a)

and (b), the Board may require letters of reference from law

enforcement agencies under section 1310(b) of the act.

(d) An applicant for a key employee license will be




138

(e) After review of the information submitted under

subsections (a), (b) and (c), including the background

investigation, the Board may issue a key employee license if the

individual applicant has proven by clear and convincing evidence

that the individual is person of good character, honesty and

integrity and is eligible and suitable to be licensed as a key

employee.

(f) A license issued under this section will be

nontransferable.

(g) An individual who is a key employee may request in

writing that the Board waive the obligation to be licensed as a

key employee by:

(1) Filing an original and three copies of a

Principal/Key Employee Waiver Form.

(2) A nonrefundable waiver application fee.

(h) As part of the waiver request, the individual shall be

required to demonstrate one of the following:

(1) The individual is not assigned to an applicant’s

or licensee’s gaming operations in this Commonwealth.

(2) The individual’s duties do not have an effect on

or require contact with slot machines for use or play in this

Commonwealth.

(i) The request for a waiver must include, at a minimum,

the following:

139

(1) A description of the individual’s title, duties

and responsibilities with the applicant, licensee or with any of

its affiliates, intermediaries, subsidiaries or holding

companies.

(2) A certification by the chief executive officer

stating that the employee is not assigned to the licensee’s

gaming operations in this Commonwealth or that the employee’s

duties do not have an effect on or require contact with slot

machines for use or play in this Commonwealth.

(j) An applicant for a key employee waiver will be

required to reimburse the Board for any additional cost, based



§ 435.3. Occupation permit.

(a) An applicant for an occupation permit shall submit:

(1) An original and three copies of the Gaming

Employee Application and Disclosure Information Form or an

electronic application using the SLOTS Link system.


(3) Verification of an offer of employment from a

licensed entity.

Source: The provisions of this § 435.2 amended October 20, 2005, effective November 5, 2005, 35 Pa.B. 6215; amended December 31, 2005, effective December 15, 2005, 35 Pa.B 7085; amended May 27, 2006, effective May 4, 2006, 36 Pa.B. 2615; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

140


(a), an applicant for an occupation permit shall:







applications).

(c) An applicant for an occupation permit may be required

to reimburse the Board for any additional costs, based on the

actual expenses incurred by the Board, in conducting the


(d) After review of the information submitted under

subsections (a) and (b), including a background investigation,

the Board may issue a permit if the individual has proven that

the individual is a person of good character, honesty and

integrity and is eligible and suitable to hold an occupation

permit.

(e) An individual who wishes to receive an occupation

permit under this chapter may authorize an applicant for or

holder of a slot machine, management company, manufacturer,

manufacturer designee or supplier license or vendor

certification to file an application on the individual’s behalf.

141

(f) A permit issued under this section shall be

nontransferable.

§ 435.4. Key employee license and occupation permit term and

renewal.

(a) A key employee license or occupation permit issued

under this chapter shall be valid for 1 year from the date of

Board approval.

(b) A renewal application shall be submitted to the Board

at least 60 days prior to the expiration of a key employee

license or occupation permit.

(c) A key employee license or occupation permit for which

a completed renewal application and fee have been received by

the Board will continue in effect until the Board sends written

notification to the holder of the key employee license or

occupation permit that the Board has approved or denied the key

employee license or occupation permit.

§ 435.5. Nongaming employee registration.

(a) An applicant for a nongaming employee registration

shall submit:

Source: The provisions of this § 435.3 amended October 20, 2005, effective November 5, 2005, 35 Pa.B. 6215; amended May 27, 2006, effective May 4, 2006, 36 Pa.B. 2615; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841. Source: The provisions of this § 435.4 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

142

(1) An original and three copies of the Nongaming

Employee Registration Form or an electronic application using

the SLOTS Link system.



(a), an applicant for a nongaming employee registration shall:







applications).

(c) After review of the information required under

subsections (a) and (b), the Board may register the individual

if the individual has proven that he is eligible and suitable to

be registered under this section.

(d) An individual who wishes to receive a nongaming

employee registration under this chapter may authorize an

applicant for or holder of a slot machine license or a vendor

certification to file an application on the individual’s behalf.

§ 435.6. Board credentials.


143

(a) The following individuals shall obtain a Board

credential:

(1) A principal whose duties are required to be

performed at a licensed facility in excess of 12 days in a 12-

month period.

(2) Key employees.

(3) Gaming employees.

(4) Nongaming employee registrants.

(5) State employees whose duties require the

employee’s presence at a licensed facility more frequently than

once a month.

(b) The credential will contain the following information:

(1) The name, address, date of birth, sex, height,

weight, hair color and eye color of the licensee, permittee or

registrant.

(2) A photograph of the face of the individual to

whom the credential has been issued which meets the standards of

the Commonwealth Photograph Imaging Network.

(3) The inscription “Pennsylvania Gaming Control

Board.”

(4) The seal of the Commonwealth.

(5) A license, permit or registration number.

(6) The type of license, permit or registration.

(7) An expiration date.

144

(8) The signature of the employee.

(9) Other security features as determined by the

Board.

(c) An individual required to obtain a Board credential

shall carry the Board credential on his person at all times

while engaged in the performance of his duties on the premises

of a licensed facility.

(d) Except as provided in § 435.7 (relating to emergency

credentials), slot machine and management company licensees are

prohibited from allowing a principal who is required to obtain a

credential, key employee, gaming employee or nongaming employee

registrant to perform his duties on the premises of a licensed

facility unless the employee has his Board-issued credential.

(e) Notwithstanding subsection (a), the Board may, upon

written request by a slot machine or management company licensee

and upon a showing of good cause, exempt certain positions,

titles or persons from the requirements of this section.

(f) An employee whose license, permit or registration has

been suspended or revoked by the Board shall surrender the Board

credential to the Board.

§ 435.7. Emergency credentials.


145

(a) An emergency credential obtained from the Board may be

issued by the security department of a slot machine licensee to

a principal, key employee, gaming employee or nongaming employee

of the slot machine licensee who does not have the credential on

his person, or whose credential has been stolen, lost or

destroyed, to enable the employee to perform the employee’s

duties at the licensed facility, if the security department of

the slot machine licensee performs all of the following prior to

issuing the emergency credential:

(1) Verifies that the employee is listed in the slot

machine licensee's current employee status report.

(2) Verifies that the employee holds a valid license,

permit or registration.

(3) Confirms the employment and licensure, permit or

registration information of the employee with the supervisor of

the employee.

(4) Verifies that fewer than 12 emergency credentials

have been issued to the particular employee in the past 12

months.

(5) Maintains, in writing, an emergency credentials

log containing the following information:

(i) The name and license, permit or registration

number of the employee to whom the emergency credential was

issued.

146

(ii) The date and time that the emergency

credential was issued.

(iii) The name and license, permit or

registration number of the slot machine licensee security

department employee issuing the emergency credential.

(iv) The badge number of the emergency credential

that was issued.

(b) Each slot machine licensee shall submit a copy of its

emergency credential log for the preceding year to the Bureau of

Licensing by January 15 of the following year.

(c) Emergency credentials:

(1) Will be valid for a time period not to exceed 72

hours.

(2) Will be sequentially numbered.

(3) Must be stored in the offices of the security

department and distributed by that department in accordance with

this section and the slot machine licensee's procedures

submitted to and approved by the Board.

§ 435.8. Temporary credentials for principals and key

employees.

Source: The provisions of this § 435.7 amended July 22, 2006, effective June 28, 2006, 36 Pa.B. 3939; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

147

(a) A temporary credential may be issued by Board to a

principal or a key employee whose investigation for licensure by

the Board is pending but whose presence is necessary in the

licensed facility.

(b) A temporary credential issued under this section is

void 120 days after the date of its issuance.

(c) The Board may extend the expiration date of a

temporary credential if the Board determines additional time is

needed to complete the investigation for licensure.

§ 435.9. Temporary credentials for nongaming employees.

(a) A temporary credential may be issued by the Board to a

nongaming employee if:

(1) The applicant has submitted all of the application

materials required under § 435.5 (relating to nongaming employee

registration).

(2) The applicant has been fingerprinted and

photographed by the Pennsylvania State Police.

(b) Temporary credentials for nongaming employees will be

issued by the Bureau.

(c) A temporary credential issued under this section will

be valid for 30 days.


148

§ 435.10. Loss or destruction of credentials.

(a) As soon as possible, but no later than 24 hours,

following the loss or destruction of a Board credential,

emergency credential or temporary credential, the person to whom

the credential was originally issued shall notify the security

department of the slot machine licensee.

(b) The security department of the slot machine licensee

shall notify the Board in writing within 24 hours and may issue

an emergency credential in accordance with § 435.7 (relating to

emergency credentials).

(c) An employee who has lost his Board credential may

request a duplicate Board credential by submitting a Request for

Duplicate PGCB Credential form and the fee established by the

Board to the Bureau of Licensing.

CHAPTER 436. HORSEMEN’S ORGANIZATIONS


The following words and terms when used in this chapter

shall have the following meanings unless the context clearly


Fiduciary – A person who is entrusted by the horsemen’s

organization or its members to hold or manage any funds received Source: The provisions of this § 435.9 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841. Source: The provisions of this § 435.10 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

149

for horsemen under section 1406 of the act (relating to

distributions from the Pennsylvania Race House Development Fund)

or who exercises control or discretionary authority over

selection or management of a health or pension benefit plan,

disposition of its assets or distribution of its funds.

Health benefits - Any plan, fund or program which is

maintained by a horsemen’s organization and that provides

healthcare benefits to horsemen at licensed racetracks, their

families and employees, and any others so designated by the

rules and eligibility requirements of the organization

consistent with the act.

Horsemen – A thoroughbred or standardbred horse owner or

trainer who enters and runs a horse at a licensed racing entity

in the current or prior calendar year and meets the membership

requirements of the horsemen’s organization to participate in

the receipt of benefits therefrom.

Horsemen’s organization – A trade association which

represents the majority of horsemen at a licensed racetrack and

which exists for the purpose, in whole or in part, of

negotiating a horsemen’s contract and resolving grievances,

disputes or other matters with management of a licensed racing

entity, as defined by section 1103 of the act (relating to

definitions).

150

Horsemen’s organization officer - Any officer or person

authorized to perform the functions of president, vice

president, secretary/treasurer or other executive function of a

horsemen’s organization, and any member of its board of

directors or similar governing body.

Horsemen’s organization representative - Any person,

compensated or not, who is authorized to represent a horsemen’s

organization or any member thereof in any matter relating to

horsemen’s agreements with the licensed racing entity, or who

undertakes on behalf of a horsemen’s organization or any member

thereof to promote, facilitate or otherwise influence the

relations between a horsemen’s organization and the licensed

racing entity.

Pension benefits – Any plan, fund or program which is

maintained by a horsemen’s organization and that funds a program

which provides retirement income to horsemen at licensed

racetracks, their families and employees, and any others so

designated by the rules and eligibility requirements of the

organization consistent with the act.

§ 436.2. Horsemen’s organization registration.

(a) Each horsemen’s organization or affiliate representing

horsemen shall register with the Board in accordance with this

section.

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(b) Each horsemen’s organization shall file a completed

Horsemen’s Organization Registration Statement with the

registration fee established by the Board.

(c) Horsemen’s organization applicants and registrants

shall be subject to the general application and licensing

requirements of Chapters 421 and 423 (relating to general

provisions and applications).

(d) Horsemen’s organization registrations shall be valid

for 4 years from the date on which the registration is approved

by the Board. Renewals shall be valid for 4 years and shall be

filed no later than 120 days prior to the expiration of the

current registration period. A registration for which a

completed renewal application and fee has been received by the

Board will continue in effect unless the Board sends written

notification to the horsemen’s organization that the Board has

denied renewal of the registration.

§ 436.3. Permitting of officers, directors, representatives and

fiduciaries.

(a) Every officer, director or representative of a

horsemen’s organization who is currently elected or appointed

and duly authorized to act on behalf of the horsemen’s

organization, or any individual duly authorized to act in a

fiduciary capacity on behalf of horsemen shall be permitted in

accordance with this section.

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(b) Every officer, director or representative of a

horsemen’s organization who is currently elected or appointed

and duly authorized to act on behalf of the horsemen’s

organization, or any individual duly authorized to act in a

fiduciary capacity on behalf of horsemen shall file a completed

Horsemen’s Permit Application Form with the licensing fee

established by the Board.

(c) Applicants and permittees under this section shall be

subject to the general application and licensing requirements of

Chapters 421 and 423 (relating to general provisions and

applications).

(d) Permits issued under this section shall be valid for a

period of 1 year from the date on which the permit is approved

by the Board. Renewals shall be valid for a period of one year

and shall be filed no later than 60 days prior to the expiration

of the current permit. A permit for which a completed renewal


in effect unless the Board sends written notification to the

permittee that the Board has denied renewal of the permit.

(e) If a current officer, director or representative of a

horsemen’s organization is denied a permit required by this

section, that officer, director or representative shall be

precluded from engaging in any activity of the horsemen’s

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organization involving gaming funds allocated to, received by,

or distributed from the horsemen’s organization.

(f) A person who is a third party provider of a health or

pension benefit plan to a horsemen’s organization shall be

exempt from the requirements of this section. A licensed

attorney or accountant representing a horsemen’s organization

who does not meet the conditions in subsection (a) shall also be

exempt from the requirements of this section.

§ 436.4. Responsibilities of horsemen’s organizations,

officers, directors, representatives and fiduciaries.

(a) Horsemen’s organizations, officers, directors,

representatives and fiduciaries shall ensure that all funds

allocated to the horsemen and horsemen’s organizations are used

for the benefit of all horsemen of this Commonwealth.

(b) Horsemen’s organizations shall maintain adequate

records of receipts and distributions of all funds allocated to

them under the act.

(c) By March 30 of each calendar year, each horsemen’s

organization shall file with the Board two copies of its audited

financial statements together with any management letters or

reports written thereon as prepared by its independent auditor.

These filings shall be made available for public inspection

during the normal operating hours of the Board.

§ 436.5. Fiduciaries.

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Fiduciaries shall:

(1) Ensure that all funds received for the benefit of the

horsemen are distributed pursuant to the act.

(2) Manage all health and pension benefit plans for the

exclusive benefit of participants and beneficiaries.

(3) Carry out their duties in a prudent manner and refrain

from conflict-of-interest transactions.

(4) Comply with any limitations on certain plans'

investments in particular securities and properties.

(5) Fund benefits in accordance with applicable law and

plan rules.

(6) File quarterly reports with the Board within 20 days

of the end of each calendar quarter. The reports must detail

the expenditure of funds designated by the act for the benefit

of horsemen and be in a format and manner designated by the

Board.

(7) Provide documents to the Board as may be requested in

the conduct of investigations or to ensure compliance with the

act and this chapter.

§ 436.6. Health and pension benefit plans.

(a) All contracts for health and pension benefit plans

established for the benefit of members of a horsemen’s

organization must:

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(1) Be submitted to the Board for review at least 90

days prior to the proposed effective date of the contract.

(2) Not be effective until approved by the Board.

(b) Administrative and overhead costs incurred by the

horsemen’s organization for the administration of health and

pension benefit plans must be reasonable. Administrative costs

that do not exceed 15% of the statutory allocation are

considered reasonable.

§ 436.7. Enforcement.

The Office of Enforcement Counsel may initiate proceedings

against any person, including any horsemen’s organization, for

violations of any provisions of the act or this chapter.

CHAPTER 437. VENDOR REGISTRATION AND CERTIFICATION

§ 437.1. General vendor requirements.

(a) A vendor seeking to conduct business with a slot

machine applicant or licensee, except as provided in § 437.10

(relating to emergency vendor), shall apply to the Board for

registration if:

(1) The total dollar amount of business will be or is

anticipated to be greater than $15,000 but $200,000 or less with

a single slot machine applicant or licensee within a consecutive

12-month period.


anticipated to be greater than $15,000 but $500,000 or less with

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multiple slot machine applicants or licensees within a

consecutive 12-month period.

(b) A vendor seeking to conduct business with a slot

machine applicant or licensee, except as provided in § 437.10

shall apply to the Board for certification if:


anticipated to be greater than $200,000 with a single slot

machine applicant or licensee within a consecutive 12-month

period.


anticipated to be greater than $500,000 with multiple slot

machine applicants or licensees within a consecutive 12-month

period.

(3) The vendor’s employees will have access to

restricted areas or the gaming floor.

(4) The Board notifies the vendor that certification

is required based upon the Board’s analysis of the vendor’s

services.

(c) The following persons are exempt from the vendor

registration and the vendor certification requirements of this

chapter:

(1) Public utilities which provide only one or more of

the following services to a slot machine applicant or licensee:

(i) Water.

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(ii) Sewerage.

(iii) Electricity.

(iv) Natural gas.

(2) Regulated insurance companies providing insurance

to a slot machine applicant or licensee and its employees.

(3) Employee benefit and retirement plans and related

administrator including incorporated 401K plans and employee

stock purchase programs.

(4) National or local professional associates that

receive funds from the slot machine applicant or licensee for

the cost of enrollment, activities and membership.

(5) State, Federal and municipal operated agencies.

(6) Manufacturers and suppliers of liquor, wine and

beer regulated by the Pennsylvania Liquor Control Board.

(7) State and Federally regulated banks or savings and

loan associations where funds are deposited by slot machine

licensees, not withstanding those sources or transactions

provided to a slot machine licensee which require Board

approval.

(8) Providers of professional services including

accountants, attorneys, engineers and architects.

(9) Telecommunication service providers.

(10) Shipping services.

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(11) Person that engages in efforts to influence

legislative action or administrative action on behalf of a

principal for economic consideration.

(12) Public institutions of higher education.

(13) Professional entertainers, sports figures and

other celebrities engaged by a slot machine licensee to appear

at a slot machine licensee-sponsored special entertainment or

promotional event.

(14) Newspapers, television stations, radio stations

and providers of simulcast services that contract with slot

machine applicants or licensees.

(d) Subsection (c) does not relieve a slot machine

applicant or licensee of any reporting obligations required by

§ 441.12 (relating to agreements).

(e) A vendor who provides goods or services that are not

listed in subsection (c) may seek a waiver of vendor

certification or registration requirements by filing a completed

Vendor Certification Waiver Application.

(f) The Board may, in response to misrepresentations or

changes in circumstances, revoke an exemption or waiver granted

under this section and require the recipient of the exemption or

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waiver to comply with the vendor registration and certification

requirements of this chapter.

§ 437.2. Vendor registration applications.

(a) A vender seeking registration shall complete and the

slot machine applicant or licensee for whom the vendor will

provide goods or services shall submit an original and four

copies of a Vendor Registration Form unless otherwise directed

by the Board.


(a), an applicant for a vendor registration shall:







applications).

(c) An applicant for a vendor registration will be required

to reimburse the Board for costs incurred by the Board in

conducting the review of the application, up to a maximum amount

of $2,000.

Source: The provisions of this § 437.1 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

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(d) A vendor registration will not be issued until all fees

have been paid.

§ 437.3. Vendor certification applications.

(a) A vender seeking certification shall complete and the

slot machine applicant or licensee for whom the vendor will

provide goods or services shall submit:

(1) An original and four copies of a Vendor

Certification Form unless otherwise directed by the Board.


(3) A Vendor Certification Form for each affiliate,

intermediary, subsidiary, and holding company of the applicant.

(4) Applications for each principal and key employee

as required by §§ 437.4 and 437.5 (relating to principal

certification; and key employee certification).


(a), an applicant for a vendor certification shall:






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applications).

(c) A vendor certification will not be issued until all

fees have been paid.

§ 437.4. Principal certification.

(a) Principals of certified vendors or applicants thereof,

including natural persons and entities, shall obtain a principal

certification from the Board.

(b) Certified principals and applicants for principal

certification are subject to the requirements and waiver

provisions of Chapter 433 (relating to principal licenses).

§ 437.5. Key employee certification.

(a) Key employees of certified vendors or applicants

thereof shall obtain a key employee certification from the

Board.

Source: The provisions of this § 437.3 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841. Source: The provisions of this § 437.4 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841. Source: The provisions of this § 437.5 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

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(b) Key employee applicants for certification and certified

key employees are subject to the requirements and waiver

provisions of § 435.2 (relating to key employee license).

§ 437.6. Registration and certification term and renewal.

(a) Certifications, registrations and renewals issued under

this chapter shall be valid for 4 years from the date of Board

approval.

(b) A renewal application and renewal fee shall be

submitted to the Board at least 60 days prior to the expiration

of a certification or registration.

(c) A certification or registration for which a completed

renewal application and fee has been received by the Board will

continue in effect until the Board sends written notification to

the holder of the certification or registration that the Board

has approved or denied the certification or registration.

§ 437.7. Registered and certified vendor responsibilities.

(a) A holder of a vendor certification or registration

shall have a continuing duty to:




actions; and comply with all conditions, restrictions,


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requirements, orders and rulings of the Board in accordance with

the act.


the holder of a vendor certification or registration ineligible,

unqualified or unsuitable to hold a certification or

registration under the standards and requirements of the act and

of this part.

(b) An employee of a certified vendor shall be required to

obtain an occupational permit under § 435.3 (relating to

occupational permit) if:

(1) The employee is the onsite supervisor of other

employees of the vendor whose duties of employment or incidental

activities related to employment require the employees to be on

the gaming floor or in a restricted area.

(2) The employee’s duties of employment or incidental

activities related to employment require the employee to be on

the gaming floor or in a restricted area and require the

employee to touch or have contact with a slot machine or

associated equipment.

(c) An employee of a certified vendor that is not required

to obtain an occupational permit under subsection (b) shall be

required to obtain a nongaming employee registration under §

435.5 (relating to nongaming employee registration) if:

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activities related to employment require the employee to be on

the gaming floor but do not require the employee to touch or

have contact with a slot machine or associated equipment other

than exterior cleaning.


activities related to employment require the employee to be in a

restricted area, do not require the employee to touch or have

contact with a slot machine or associated equipment other than

exterior cleaning and the employee is under the constant

supervision of an employee of the slot machine licensee who is

licensed or permitted and who has the appropriate access

clearance to be in the restricted area.

(d) Employees of a certified vendor who are not required to

obtain an occupation permit or a nongaming employee registration

under subsections (b) or (c) may be required to obtain an

occupation permit or nongaming employee registration if the

Board determines, after a review of the work being performed,

that obtaining a permit or registration is necessary for the

protection of the integrity of gaming.

§ 437.8. Approved vendors list; prohibited vendors.


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(a) The Board will maintain a list of approved registered or

certified vendors and a list of prohibited vendors.

(b) A slot machine licensee or applicant may not enter into

an agreement or continue to do business with a vendor listed as

a prohibited vendor.

(c) The Board will consider the following factors in

determining whether a vendor shall be listed as a prohibited

vendor:

(1) The failure of a vendor to apply for certification

or registration after notice from the Board that certification

or registration is required.

(2) The failure of a vendor to cooperate with the Board

in the Board’s review of the application for certification or

registration.

(3) The vendor’s certification or registration is

suspended, revoked or denied.

(4) The vendor is restricted from reapplication by

action of the Board.

(5) The vendor is temporarily prohibited from doing

business with slot machine license applicants or licensees by

action of the Board.

(d) A person or entity seeking to be removed from the

list of prohibited vendors shall file a petition for removal in

accordance with § 493.4 (relating to petitions generally). The

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petition must state the specific grounds believed by the

petitioner to constitute good cause for removal from the

prohibited vendors list and how the vendor has cured any

deficiencies that led to the vendor being placed on the

prohibited vendors list.

§ 437.9. Permission to conduct business prior to certification.

(a) Notwithstanding §§ 437.1 (relating to vendor

registration), the Board may allow an applicant for a vendor

certification or registration to conduct business with a slot

machine applicant or licensee prior to the certification or

registration of the vendor applicant if all of the following

criteria are met:

(1) A completed Vendor Registration Form or

Certification Form has been filed by the slot machine applicant

or licensee in accordance with § 437.2 or 437.3 (relating to

vendor registration applications; and vendor certification

applications).

(2) The slot machine applicant or licensee certifies

that it has performed due diligence on the vendor.

(3) The slot machine applicant or licensee shows good

cause for granting the written request.

(b) Permission to conduct business under this section shall

be for a period of 6 months, except that the Board may extend

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such relief for additional 6-month periods upon a showing of

good cause by the slot machine licensee or applicant.

(c) The board may extend the relief for additional 6-month

periods upon a showing of good cause by the slot machine

applicant or licensee.

§ 437.10. Emergency vendor.

(a) A slot machine licensee may utilize a vendor that is

not registered or certified when a threat to public health,

welfare or safety exists or circumstances outside the control of

the slot machine applicant or licensee creates an urgency of

need which does not permit the delay involved in using the

formal method of vendor certification or registration.

(b) When using a vendor that is not registered or

certified to respond to an emergency, the slot machine applicant

or licensee shall:

(1) File a Vendor Notification Form with the Board

within 72 hours of the vendor’s commencement of services.

(2) Provide a written explanation to the Board of the

basis for the emergency vendor procurement and for the selection

of the particular vendor.

Source: The provisions of this § 437.9 amended February 18, 2006, effective February 2, 2006, 36 Pa.B. 909; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

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(3) File a Vendor Registration Form or Vendor

Certification Form on behalf of the vendor within 20 business

days of the filing of the Vendor Notification Form.

§ 437.11. Slot machine applicants’ and licensees’ duty to

investigate.

(a) An applicant for or holder of a slot machine license

shall investigate the background and qualifications of all

applicants for vendor registration or certification with whom it

intends to have a contractual relationship or enter into an

agreement. Certification or registration by the Board may not

be relied upon as the sole criterion for entering into an

agreement with a certified or registered vendor.

(b) An applicant for or holder of a slot machine license

shall have an affirmative duty to avoid agreements or

relationships with applicants for vendor registration or

certification whose background or association is injurious to

the public health, safety, morals, good order and general

welfare of the people of this Commonwealth, who threaten the

integrity of gaming in this Commonwealth or who discredit or

tend to discredit the Commonwealth or the gaming industry in

this Commonwealth.


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(c) An agreement or contract between an applicant for or

holder of a slot machine license and an applicant for or holder

of a vendor registration or certification shall contain a

cancellation clause that allows termination of the agreement or

contract in the event that the Board or the slot machine

applicant or licensee finds that the agreement or contract fails

to meet the requirements of subsection (b). This provision

applies to written and oral agreements and contracts.

CHAPTER 438. LABOR ORGANIZATIONS


The following words and terms when used in this chapter



Labor organization – Any organization, union, agency,

employee representation committee, group, association, or plan

in which employees participate which exists for the purpose, in

whole or in part, of dealing with a licensed gaming facility

concerning grievances, labor disputes, wages, rates of pay,

hours, or other terms or conditions of employment, including any

conference, general committee, joint or systems board or

international labor organization.


170

Labor organization agent – A person, compensated or not,

who is authorized to represent a labor organization in any

employment matter relating to employees who are employed by a

licensed gaming entity, or who undertakes on behalf of the labor

organization to promote, facilitate or otherwise influence the

relations between the labor organization and a licensed gaming

entity.

Labor organization officer - An officer or person

authorized to perform the functions of president, vice

president, secretary/treasurer or other executive function of a

labor organization, and member of its executive board or similar

governing body who exercises any authority, discretion or

influence with regard to any matter relating to employees who

are employed in a licensed gaming facility.

Labor organization principal employee - An employee of a

labor organization who serves in a management, supervisory or

policy making position, which exercises any authority,

discretion or influence with regard to any matter relating to

employees who are employed in a licensed gaming facility.

§ 438.2. Labor organization notification.

(a) Each labor organization shall file a completed Labor

Organization Notification Form in a format prescribed by the

Board.

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(b) Labor organizations shall file an updated version of

the Labor Organization Notification Form within 30 days of any

change in the information contained on the form.

§ 438.3. Permitting of labor organization officers, agents and

principal employees.

(a) Every labor organization officer, agent and principal

employee shall be permitted in accordance with this section.

(b) Every labor organization officer, agent and principal

employee shall file a completed Union Permit Application Form

with the licensing fee established by the Board.

(c) Applicants and permittees under this section shall be

subject to the general application and licensing requirements of

Chapters 421 and 423 (relating to general provisions and

applications).

(d) Permits issued under this section shall be valid for 1

year from the date on which the permit is approved by the Board.

Renewals will be valid for a period of 1 year and shall be filed

no later than 60 days prior to the expiration of the current

permit. A permit for which a completed renewal application and

fee has been received by the Board will continue in effect

unless the Board sends written notification to the permittee

that the Board has denied renewal of the permit.


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The Office of Enforcement Counsel may initiate proceedings

against any labor organization, or labor organization officer,

agent or principal employee for violations of any provisions of

this chapter.

CHAPTER 439. JUNKETS

§439.1. Definitions.

The following words and terms, when used in this part, have

the following meanings, unless the context clearly indicates

otherwise:

Compensation - Any form of remuneration whatsoever,

including, the payment of cash, the forgiveness or forbearance

of a debt, or the direct or indirect provision of a product,

service or item without charge or for less than full value.

Complimentary accommodations - A hotel accommodation

provided to a person at no cost, or at a reduced price not

generally available to the public under similar circumstances;

provided, however, that the term shall include any hotel room

provided to a person at a reduced price due to the anticipated

or actual gaming activities of that person.

Complimentary service or item - A service or item provided

directly or indirectly by a slot machine licensee at no cost or

at a reduced price.

Junket –

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(i) An arrangement made between a slot machine licensee and

a junket enterprise or its junket representative, the purpose of

which is to induce any person, selected or approved, to come to

a licensed facility for the purpose of gambling and pursuant to

which, and as consideration for which, any or all of the cost of

transportation, food, lodging and entertainment for said person

is directly or indirectly paid by a slot machine licensee. The

person shall be selected or approved on the basis of one or more

of the following:

(A) The person’s ability to satisfy a financial

qualification obligation related to his or her ability or

willingness to gamble, which shall be deemed to occur whenever a

person, as an element of the arrangement is required to perform

one or more of the following:

(1) Establish a customer deposit with a slot

machine licensee.

(2) Demonstrate to a slot machine licensee the

availability of a specified amount of cash or cash equivalent.

(3) Gamble to a predetermined level at the

licensed facility.

(4) Comply with any similar obligation.

(B) The person’s propensity to gamble, which shall be

deemed to occur whenever that person has been selected or

approved on the basis of one or more of the following:

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(1) The previous satisfaction of a financial

qualification obligation in accordance with the provisions of

subsection (A).

(2) An evaluation that the person has a tendency

to participate in gambling activities as the result of:

(i) An inquiry concerning the person's

tendency to gamble.

(ii) Use of other means of determining that

the person has a tendency to participate in gambling activities.

(ii) A rebuttable presumption that a person has been

selected or approved for participation in an arrangement on a

basis related to his or her propensity to gamble shall be

created whenever such person is provided with one or more of the

following:

(A) Complimentary accommodations as part of the

arrangement.

(B) Complimentary food, entertainment or

transportation which has a value of $200.00 or more.

Junket enterprise - A person, other than a slot machine

licensee, who employs or otherwise engages the services of a

junket representative in connection with a junket to a licensed

facility, regardless of whether or not such activities occur

within the Commonwealth.

Junket representative –

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(i) A natural person who negotiates the terms of, engages

in the referral, procurement or selection of persons who may

participate in any junket to a licensed facility, regardless of

whether or not those activities occur within the Commonwealth.

(ii) Exception. A gaming employee of a slot machine

licensee who performs the duties and functions listed in

subsection (i) for the licensed facility is not a junket

representative.

§ 439.2. Junket enterprise license requirements.

(a) Each slot machine licensee must file a Junket Enterprise

License Form (JELF) with the Board in order to conduct business

with a junket enterprise.

(b) All junket enterprise license forms must be submitted

by a slot machine licensee or applicant with a verification

provided by the slot machine licensee or applicant that the

junket enterprise’s services will be utilized at the licensed

facility.

(c) A junket enterprise shall be licensed as a junket

enterprise prior to a slot machine licensee permitting a junket

involving that junket enterprise to arrive at its licensed

facility. A junket enterprise shall be considered "involved" in

a junket to a licensed facility if it receives any compensation

whatsoever from any person as a result of the conduct of the

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junket. No slot machine licensee may engage the services of any

junket enterprise which has not been licensed.

§ 439.3. Junket enterprise license form.

A Junket Enterprise License Form (JELF) shall consist of an

application processing fee and shall be in a format prescribed

by the Board requesting the following information:

(1) Any official or trade name used.

(2) Current and former business addresses.

(3) Telephone number.

(4) The location of the applicant’s business, a

description of the type of junket services to be provided, a

description of the geographic area from which the junkets will

originate and the name of the slot machine licensees or

applicants to which junkets will be provided.

(5) Federal Employer Identification Number/Tax

Identification Number.

(6) Whether the junket enterprise is minority- or

women-owned and controlled and the junket enterprise

certification number, pursuant to Chapter 481.

(7) Form of business and a copy of the certificate of

incorporation, charter, by-laws, partnership agreement, trust

agreement or other basic documentation of the junket enterprise.

(8) The date on which a formal acceptance of the

agreement to conduct business with a slot machine licensee or

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applicant occurred and a copy of the agreement or in the absence

of a written agreement, a description thereof, including the

expected duration and compensation.

(9) Names and addresses of all subsidiaries.

(10) Whether the applicant has had any registration,

license, permit or certificate granted, denied, suspended,

conditioned or revoked by any government agency in the

Commonwealth or any other jurisdiction, the nature of such

registration, license, permit or certificate, the agency and its

location, the date of such action and the facts related thereto.

(11) The names, addresses, title or position, date of

birth and information concerning any gaming licenses,

registrations or permits previously or currently applied for in

any jurisdiction, for each of the following:

(i) Any individual who entered into the agreement

with or will deal directly with the slot machine licensee or

applicant, including junket representatives; the immediate

supervisors of such persons; and all persons responsible for the

office out of which such junket representatives and supervisors

work.

(ii) Any officer, partner, or director who will be

involved in the conduct of the junket business with the slot

machine licensee or applicant.

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(iii) If the junket enterprise is a sole

proprietorship, the sole proprietor.

(iv) Each beneficial owner of more than five

percent of the junket enterprise and the percentage of that

ownership.

(12) The name, address and percentage of ownership of

each entity directly owning more than five percent of the junket

enterprise or its business.

(13) A Junket Enterprise License Form for the

applicant and any key employee qualifier that is an entity, and

for each affiliate, intermediary, subsidiary and holding company

of the applicant.

(14) A Junket Enterprise Representative Registration

for each junket representative, key employee qualifier who is a

natural person and key employee.

(15) The applicant's Federal tax returns and related

documents for the three years, State tax returns, where

appropriate and related documents for the one year preceding

application.

(16) Information regarding any judgments or petitions

for bankruptcy or insolvency and any relief sought under any

provision of the Federal Bankruptcy Act or any state insolvency

law.

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(17) Information regarding any civil, criminal,

administrative and investigatory proceedings relating to the

applicant and its key employees and key employee qualifiers.

(18) A diversity plan as set forth in section

1325(b) of the act (relating to license or permit issuance) and

Chapter 481, signed by the chief executive officer of the

applicant.

(19) The name, position or title and signature of the

individual who supplied the information in the JELF.

(20) Properly executed forms for consents to

inspections, searches and seizures; waivers of liability for

disclosures of information and consents to examination of

accounts and records in forms as prescribed by the Board.

(21) Any additional information requested by the Board.

§ 439.4. Junket representatives.

(a) No person shall act as a junket representative in

connection with a junket to a licensed facility unless he or she

has been registered as a junket representative and is employed

by a junket enterprise that has been licensed by the Board.

(b) A junket representative may only be employed by one

junket enterprise at a time. For the purposes of this section,

to qualify as an employee of a junket enterprise, a junket

representative must:

(1) Receive all compensation for his or her services

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as a junket representative within the Commonwealth through the

payroll account of the junket enterprise.

(2) Exhibit all other appropriate indicia of genuine

employment, including Federal and State taxation withholdings.

(c) No junket enterprise shall employ or otherwise engage

the services of a junket representative except in accordance

with the provisions of this section.

§ 439.5. Junket enterprise representative registration.

(a) All Junket Enterprise Representatives must register

with the Board.

(b) An application for a Junket Enterprise Representative

Registration (JERR) shall be on a form prescribed by the Board

and shall include the

following:

(1) The name and address of the individual, to include

the home address and residence history and all business

addresses.

(2) Daytime and evening telephone numbers.

(3) Date of birth.

(4) Physical description of the applicant.

(5) Social Security number.

(6) Citizenship, and, if applicable, resident alien

status, including employment authorization.

(7) Marital status.

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(8) Military history.

(9) Employment history, including gaming-related

employment and contact information for prior employers.

(10) Education history.

(11) Family and marital history, including any current

court orders relating to alimony, spousal support or child

support.

(12) Credit history.

(13) History of insurance claims relating to the

business activities of the applicant.

(14) Information relating to any health-related issues

involving alcohol or controlled substances.

(15) A list of at least five references, to

include contact information for each.

(16) Verification of the applicant’s employment or an

offer of employment from a junket enterprise.

(17) A description of the employment

responsibilities of the individual and their relationship to the

junket enterprise and of all education, training and experience

that qualifies the individual for the position.

(18) A signed, dated and notarized release

authorization necessary to obtain information from

governmental agencies and other institutions about the

applicant.

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(19) A description of the individual’s criminal

history records information and arrests or criminal charges

brought against the individual.

(20) A photograph that meets the requirements

prescribed by the Board.

(21) A set of fingerprints taken by the

Pennsylvania State Police or a criminal justice agency

designated by the Pennsylvania State Police and transmitted to

the Pennsylvania State Police.

(22) A list of civil judgments consistent with section

1310(b) of the act (relating to slot machine license application

character requirements).

(23) Details relating to any similar licenses obtained

in other jurisdictions.

(24) A tax clearance and lien review from the

Department.

(25) A nonrefundable application processing fee.

(26) Any additional information requested by the

Board.

(c) In addition to the information under subsection (b),

the Board may require letters of reference from law enforcement

agencies under section 1310(b) of the act (relating to slot


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(d) After review of the information submitted under

subsection (b) and (c), including a background

investigation, the Board may issue a JERR if the individual has

proven that he is a person of good character, honesty and

integrity and is qualified to hold a JERR.

(e) An individual who wishes to receive a JERR

under this chapter may provide the junket enterprise with

written authorization to file the application on the

individual’s behalf.

(f) A JERR issued under this section shall be

nontransferable.

(g) The Board may issue, renew or deny a JERR under this

section, consistent with 18 Pa.C.S. § 9124 (relating to use of

records by licensing agencies).

(1) If the Board provides an individual with the

opportunity to demonstrate rehabilitation, the individual shall

provide certification from the Pennsylvania Board of Probation

and Parole or the County Probation and Parole Office, whichever

is applicable, that all obligations for restitution, fines and

penalties have been met.

(i) The Board will provide notice to the

district attorney of the individual’s county of residence of the

individual’s request for a determination of rehabilitation.

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(ii) The district attorney shall have 15 days

from receipt of the notice to provide input into the

determination.

(g) For an individual with out-of-state convictions, if

the Board provides the individual with the opportunity to

demonstrate rehabilitation, the individual shall provide

certification from the equivalent state or county board of

probation or parole, whichever is applicable that all

obligations for restitution, fines and penalties have been met.

(i) The Board will provide notice to the

district attorney or equivalent thereof of the individual’s

place of residence of the individual’s request for a

determination of rehabilitation.

(ii) The district attorney shall have 15 days

from receipt of the notice to provide input into the

determination.

(h) Nothing in subsection (g) shall be construed to

authorize the issuance of a JERR to an applicant who has been

convicted of an offense under 18 Pa.C.S. (relating to crimes and

offenses) or the criminal laws of any other jurisdiction which

conviction indicates that the issuance of the JERR to the

applicant would be inimical to the public policy of the act or

this part.

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§ 439.6. Junket schedules.

(a) A Junket Schedule shall be prepared by a slot machine

licensee for each junket that is arranged through a junket

enterprise or its junket representative.

(b) A Junket Schedule shall be filed with the Board’s

Bureau of Regulatory Compliance by the slot machine licensee by

the 15th day of the month preceding the month in which the

junket is scheduled. If a junket for which a Junket Schedule is

required by (a) above is arranged after the 15th day of the

month preceding the arrival of the junket, an amended Junket

Schedule shall be immediately filed with the Bureau of

Regulatory Compliance by the slot machine licensee.

(c) Junket schedules shall be certified by an employee of

the slot machine licensee and shall include:

(1) The origin of the junket.

(2) The number of participants in the junket.

(3) The arrival time and date of the junket.

(4) The departure time and date of the junket.

(5) The name and registration number of all junket

representatives and the name and vendor license number of all

junket enterprises involved in the junket.

(d) Any change in the information which occurs after the

filing of a Junket Schedule or amended Junket Schedule with the

Bureau of Regulatory Compliance shall be immediately reported in

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writing to the Bureau of Regulatory Compliance by the slot

machine licensee. These changes, plus any other material change

in the information provided in a Junket Schedule, shall also be

noted on the arrival report.

(e) All filings required by this section shall be made at

locations to be designated by the Bureau of Regulatory

Compliance.

§ 439.7. Junket arrival report.

(a) A Junket Arrival Report shall be prepared by a slot

machine licensee for each junket arranged through a junket

enterprise or its junket representative with whom the slot

machine licensee does business, which involves one of the

following:

(1) A junket enterprise.

(2) An offer of complimentary services or items which

have a value in excess of $200.00 per participant.

(3) Complimentary accommodations.

(b) Junket Arrival Reports shall be maintained by the slot

machine licensee on the premises of its licensed facility in

compliance with the following:

(1) A Junket Arrival Report involving complimentary

accommodations shall be prepared within 12 hours of the arrival

of the junket participant.

(2) A Junket Arrival Report prepared pursuant to

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subsection (a) (1) or (2) shall be filed by 5:00 P.M. of the

next calendar business day following arrival. A junket arrival

which occurs after 12:00 A.M. but before the end of the gaming

day shall be deemed to have occurred on the preceding calendar

day. For the purposes of this section, a business day shall be

defined as any day except a Saturday, Sunday or State and

Federal holiday.

(c) Junket Arrival Reports shall be certified by an

employee of the slot machine licensee and shall include:

(1) A junket guest manifest listing the names and

addresses of junket participants.

(2) Any information required which has not been

previously provided to the Bureau of Regulatory Compliance in a

Junket Schedule pertaining to that particular junket, or an

amendment thereto.

§ 439.8. Junket final reports.

(a) A final report shall be prepared by a slot machine

licensee for each junket for which the slot machine licensee was

required to prepare either a Junket Schedule or a Junket

Arrival Report.

(b) A final report shall be placed in its files within

seven days of the completion of the junket.

(c) A final report shall include:

(1) The actual amount of complimentary services and

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items provided to each junket participant.

(2) Any additional information requested by the Board.

§ 439.9. Monthly junket report.

Each slot machine licensee shall, on or before the 15th day

of the month, prepare and file with the Board a Monthly Junket

Report listing the name and registration number of each person

who performed the services of a junket representative during the

preceding month. The report shall be maintained by the slot

machine licensee on the premises of its licensed facility and

made available to the Bureau of Regulatory Compliance for

inspection.

§ 439.10. Purchase of patron lists.

(a) Each slot machine licensee, junket representative and

junket enterprise shall prepare and maintain a report with

respect to each list of names of junket patrons or potential

junket patrons purchased from or for which compensation was

provided to any source whatsoever.

(b) The report required by subsection (a) shall include:

(1) The name and address of the person or enterprise

selling the list.

(2) The purchase price paid for the list or any other

terms of compensation related to the transaction.

(3) The date of purchase of the list.

(c) The report required by subsection (a) shall be filed as

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soon as is practicable at a location to be designated by the

Bureau of Regulatory Compliance, but in no event shall such

report be filed later than seven days after the receipt of the

list by the purchaser.

§ 439.11. Junket prohibitions.

No junket enterprise or junket representative may:

(1) Engage in collection efforts.

(2) Individually receive or retain any fee from a

patron for the privilege of participating in a junket.

(3) Pay for any services, including transportation or

other items of value, provided to or for the benefit of any

patron participating in a junket, unless otherwise disclosed to

and approved by the Board.

(4) Extend credit to or on behalf of any patron

participating in a junket.

CHAPTER 440. MANAGEMENT COMPANIES

§ 440.1. Management company license.

(a) Each management company shall be required to obtain a

management company license from the Board, and pay the required

license fee, prior to providing to a slot machine licensee any

service under this chapter.

(b) Each management company license applicant shall

complete the appropriate Conditional/Category 1, Category 2 or

Category 3 application and disclosure information forms with the

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applicable appendices as if the management company license

applicant were an affiliated entity of the slot machine

licensee/applicant.

(c) Neither an applicant for or the holder of management

company license nor any of the applicant’s or holder’s

affiliates, intermediaries, subsidiaries or holding companies,

are eligible to apply for or hold a supplier license.

(d) Management company license application shall be

submitted by a slot machine licensee or applicant with a

nonrefundable application processing fee prescribed by the

Board.

§ 440.2. Management company as agent.

(a) Notwithstanding any provision to the contrary in the

management contract, a management company will be deemed to be

an agent of the slot machine licensee for purposes of imposing

liability for any act or omission of the management company in

violation of the act or this part.

(b) Notwithstanding any provision to the contrary in the

management contract, each management company shall be jointly

and severally liable for any act or omission by the slot machine

licensee in violation of the act or this part, regardless of

actual knowledge by the management company of the act or

omission.

§ 440.3. Management contracts generally.

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(a) A management contract between a slot machine licensee

and management company licensee may not become effective until

the Board has reviewed and approved the terms and conditions of

the management contract, and any amendments thereto.

(b) The slot machine licensee shall notify the Board of any

change or amendment to the management contract 30 days prior to

the effective date of the proposed amendment.

(c) A management contract will not be approved by the Board

unless the management company proves by clear and convincing

evidence that the approval of the contracts would not create a

monopoly on the control of licensed gaming facilities in this

Commonwealth. A management company that seeks Board approval of

a management contract shall disclose its financial interests in

the slot machine licensee or applicant and, if applicable,

proposed or contemplated change in ownership or control of a

slot machine licensee.

(d) Requests for approval of a management contract must

include a business plan which sets forth the parties’ goals and

objectives for the term of the management contract.

(e) Any management contract submitted for Board review and

approval must enumerate with specificity the responsibilities of

the slot machine licensee and management company under the terms

and conditions of the management contract. At a minimum, the

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terms should address whether, and to what extent, the management

company is involved in the following:

(1) Operation of the following departments:

information technology, internal audit, finance, slot

management, security and surveillance.

(2) Design, construction, improvement or maintenance,

or both of the licensed facility.

(3) Provision of operating capital and financing for

the development of the licensed facility.

(4) Payment of the slot machine license fee.

(5) Purchase or lease of slot machines or associated

equipment.

(6) Design, implementation or amendment, or both, of

the system of internal controls required under section 1322 of

the act (relating to slot machine accounting controls and

audits) and this part including the financial reporting

requirements.

(7) Hiring, terminating, training and promoting of

employees and the employment practices attendant thereto.

(8) The payment of local, State and Federal taxes and

slot machine license deposit required pursuant to the act and

this part and any penalties imposed by the Board for violations

thereof.

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(9) Advertising, player incentive or marketing

programs.

(10) Compliance with section 1325(b)(1) of the act

(relating to license or permit issuance).

(11) Obtaining and maintaining insurance coverage,

including coverage of public liability and property loss or

damage.

(12) Procurement of vendors and junkets.

(13) Selection of the licensed facility’s independent

auditor.

(f) Notwithstanding subsections (a) - (e), a slot machine

licensee and licensed management company may not contract for

the delegation of any benefits, duties or obligations

specifically granted to or imposed upon the slot machine

licensee by the act.

§ 440.4. Required provisions in management contract.

Each management contract, submitted to the Board for

approval, must contain the following:

(1) A provision that provides the grounds and

mechanisms for modifying or terminating the contract.

Source: The provisions of this § 440.3 amended May 19, 2007, effective April 9, 2007, 37 Pa.B. 2292.

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(2) A provision that shall state that the contract

shall not be effective unless and until it is approved by the

Board.

(3) A provision that describes with particularity the

method of compensating and reimbursing the management company.

(4) Provisions that contain a mechanism to resolve

patron disputes and disputes between the slot machine licensee

and the management company.

(5) A provision that indicates whether and to what

extent contract assignments and subcontracting are permissible.

(6) A provision that specifies the duration of the

management contract. A management contract may not contain a

provision that provides for the automatic renewal of the

management contract.

SUBPART C. SLOT MACHINE LICENSING

CHAPTER 441. SLOT MACHINE LICENSES


For purposes of this subpart, the following words and

phrases shall have the meanings given to them in this section.

Amenities – Ancillary activities, services or facilities in

which a registered guest or the transient public, in return for

non-de minimis consideration, may participate at a resort hotel,

including, but not limited to:

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(i) Sports and recreational activities and facilities such

as a golf course or golf driving range, tennis court or swimming

pools.

(ii) Health spa.

(iii) Convention, meeting and banquet facilities.

(iv) Entertainment facilities.

(v) Restaurant facilities.

Applicant - A person who applies to the Board to receive a

slot machine license as defined in this section.

Developer - A person engaged by a slot machine applicant or

licensee to construct a proposed licensed facility or to

otherwise make land or buildings suitable for use as a licensed

facility.

Guest rooms under common ownership – A room or group of

rooms, including timeshare units, that are owned by a well-

established resort hotel and that are available for rental.

Licensing hearing — A hearing before the Board in which an

applicant for a grant of a permanent slot machine license or a

Conditional Category 1 slot machine license will have an

opportunity to present to the Board:

(i) Evidence concerning its eligibility for a license.

(ii) Evidence concerning its suitability for a license.

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(iii) Evidence of how its proposed facility and operation

addresses the criteria identified in section 1325(c) of the act

(relating to license or permit issuance).

(iv) For applicants seeking licensure under section 1304 of

the act (relating to Category 2 slot machine license), evidence

which sets forth a comparison between the applicant and other

applicants within the same category of licensure on the

standards and criteria in the act.

Non-de minimis consideration — A payment of fair market

value of not less than $10 per patron paid to the resort hotel

for use of one or more amenities.

Organization - All legal business entities that are under

common ownership or control, including, but not limited to,

affiliates, subsidiaries, intermediaries and holding companies.

Patron of amenities — An individual who is a registered

attendee of a convention, meeting or banquet event or a

participant in a sport or recreational event or any other

social, cultural or business event held at a resort hotel or who

participates in one or more of the amenities provided to

registered guests of the resort hotel.

Slot machine license – A Category 1 slot machine license

under section 1302 of the act (relating to Category 1 slot

Source: The provisions of this § 441.1 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841; amended May 19, 2007, effective April 9, 2007, 37 Pa.B. 2296.

197

machine license), a Conditional Category 1 slot machine license

under section 1315 of the act (relating to Conditional Category

1 license), a Category 2 slot machine license under section 1304

of the act (relating to Category 2 slot machine license) and a

Category 3 slot machine license under section 1305 of the act

(relating to Category 3 slot machine license).

Well-established resort hotel — A resort hotel having no

fewer than 275 guest rooms under common ownership at the time of

application for a Category 3 slot machine license and having

substantial year-round recreational guest amenities.

§ 441.2. Slot machine application restrictions and deadlines.

(a) Under section 1304 of the act (relating to category 2

slot machine license), an applicant for a Category 2 slot

machine license under section 1301 of the act (relating to

authorized slot machine licenses), its affiliate, intermediary,

subsidiary or holding company, may not possess any ownership or

financial interest in any person eligible to apply for a

Category 1 slot machine license or its affiliates,

intermediaries, subsidiaries or holding companies.

(b) The Board will initiate the formal procedure for the

acceptance, consideration and final resolution of applications

for slot machine licenses by setting a filing period for filing

of Category 1, 2 or 3 slot machine license applications. The

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filing period set by the Board shall be posted on the Board’s

website (www.pgcb.state.pa.us).

(c) After the expiration of the filing period established

by the Board under subsection (b), the Board will set a

completion date by which all filed applications are to be

complete. An application that is not complete, as determined by

the Board, by the completion date will not be considered. The

completion date set by the Board under this subsection shall be

published in the Pennsylvania Bulletin at least 30 days prior to

the completion date.

§ 441.3. Slot machine license application.

(a) An applicant for a slot machine license shall submit

an application which includes the following:

(1) An original and three copies of the

Conditional/Category 1, Category 2, or Category 3 Application

and Disclosure Information Form.


(3) A license or waiver application for each principal

and key employee under Chapters 433 and 435 (relating to

principal licenses; and employees), including an original and

three copies of the Multi Jurisdictional Personal History

Disclosure Form, the Pennsylvania Supplement and a nonrefundable


199

background investigation deposit to be set by the Board and

provided in a fee schedule for each principal and each key

employee.

(4) Fingerprints for the applicant and each principal

and key employee.



481 (relating to general provisions), which shall be signed by

the chief executive officer of the applicant.

(6) If a temporary land-based facility is to be

licensed, a plan for how the licensee will transition to a

permanent facility, including a date for completion of the

permanent facility. A permanent facility shall be the facility

proposed by the applicant, which is designated, identified and

made part of the evidentiary record by the applicant at the

applicant’s licensing hearing. Modifications to the proposed

permanent facility following the applicant’s licensing hearing

shall be approved by the Board.




political influence).

(8) A statement demonstrating compliance with the

geographical requirements of section 1302 of the act (relating

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to Category 1 slot machine license), section 1304 of the act

(relating to Category 2 slot machine license) or section 1305 of

the act (relating to Category 3 slot machine license).

(b) Failure to provide the information required in

subsection (a) may result in the application being returned to

the applicant or result in an application being deemed

incomplete.

(c) In addition to the materials required under subsection

(a), an applicant for a slot machine license shall:

(1) Promptly provide any information requested by the

Board relating to its application, financial fitness, character,

honesty and integrity, or regulation and cooperate with the

Board in investigations, hearings, and enforcement and




applications).

(d) A copy of the local impact report required as part of

the application shall be provided to the political subdivisions

in which the licensed facility will be located at the same time

as the filing of the application for a slot machine license. The

applicant shall file a proof of service with the Board.

(e) An applicant for a slot machine license will be


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§ 441.4. Alternative Category 1 licensing standards.

(a) If an applicant for a Category 1 license, or its

affiliate, intermediary, subsidiary or holding company holds a

similar license in another jurisdiction in the United States or

Canada, the applicant may submit a written request with its

application required under § 441.3 (relating to slot machine

license application) for the Board to adopt an abbreviated

licensing process under section 1314(b) of the act (relating to

alternative Category 1 licensing standards).

(b) The Board may use the abbreviated process if:

(1) The Board determines, after investigation, that

the licensing standards in the other jurisdiction in which the

applicant or its affiliate, intermediary, subsidiary or holding

company is licensed is similarly comprehensive and thorough and

provides safeguards that are equal to or greater than those

provided in the act and granting the request would be in the

public interest.

(2) A completed application for a Category 1 license

has been filed with the Board which includes the name and

address of the regulatory agency in the other jurisdiction.


202

(3) The Board has received a copy of the completed

application, all renewal applications and all accompanying

documents filed in the other jurisdiction.

(4) The applicant has provided current, updated

information to the Board regarding the license in the other

jurisdiction and information relating to its financial viability

and suitability and good character.

(5) The applicant has no administrative or enforcement

actions pending in any other jurisdiction or the applicant has

disclosed and explained these actions to the satisfaction of the

Board.

(6) There are no pending or ongoing investigations of

possible material violations by the applicant in any other

jurisdiction or the applicant has disclosed and explained these

investigations to the satisfaction of the Board.

(c) The abbreviated process does not waive fees associated

with obtaining a Category 1 license.

(d) The Board may determine to use an abbreviated process

requiring only that information determined by the Board to be

necessary to consider the issuance of the license, including the

financial viability of the applicant.

(e) Following the issuance of a Category 1 license under

this section, the Bureau will initiate a complete review of all

information submitted under this subpart. If the applicant does

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not meet the requirements of the act or this part, the Board

will revoke, suspend or condition the license until the

applicant meets all the requirements of the act.

§ 441.5. License fee payment bond or letter of credit

requirements.

(a) An application for a slot machine license shall at all

times throughout the period in which the application is on file

with the Board include original payment bonds or original

irrevocable letters of credit, or some combination thereof, that

include draw instructions guaranteeing the applicant’s payment

of the slot machine license fee required by section 1209(c) of

the act (relating to slot machine license fee) if the license is

approved and issued.

(1) All payment bonds or irrevocable letters of credit

shall be submitted and approved by the Board before an

application may be accepted for filing. The Board’s review will

include an assessment of both the proposed terms of the payment

bond or irrevocable letter of credit and of the surety or

financial institution that will issue the payment bond or

irrevocable letter of credit. An application will be deemed

incomplete if at any time during the period the application is

Source: The provisions of this § 441.4 amended October 8, 2005, effective September 28, 2005, 35 Pa.B. 5619; amended November 2, 2005, effective November 12, 2005, 35 Pa.B. 6410; amended June 10, 2006, effective May 19, 2006, 36 Pa.B. 2899; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

204

on file with the Board payment bonds or letters of credit

approved by the Board in the amounts required in paragraph (2)

are not in full force and effect.

(2) Payment bonds or irrevocable letters of credit

must aggregate to the following amounts:

(i) $50,000,000 for each application for a

Category 1 or Category 2 license.

(ii) $5,000,000 for each application for a

Category 3 license.

(b) Unless otherwise required by the Board, a payment bond

provided under this section must be issued by a surety company

that is both licensed by the Insurance Department and assigned a

credit rating within the three highest categories, without

regard to numerics or other modifiers, by Moody’s or Standard &

Poor’s, or upon the discontinuance of Moody’s or Standard &

Poor’s, by another Nationally recognized rating service. Proof

that the surety is licensed by the Insurance Department and has

been assigned the required credit rating must accompany any

payment bond submitted under this section.

(c) Unless otherwise required by the Board, a letter of

credit must be issued by a bank, trust company, National banking

association or corporation which is both subject to regulation

by the Federal Reserve System under the Bank Holding Company Act

of 1956 (12 U.S.C.A. §§ 1841—1849) and assigned a credit rating

205

within the three highest rating categories, without regard to

numerics or other modifiers, by Moody’s or Standard & Poor’s, or

upon the discontinuance of Moody’s or Standard & Poor’s, by

another Nationally recognized rating service. Proof that the

bank, trust company, National banking association or corporation

is subject to regulation by the Federal Reserve System under the

Bank Holding Company Act of 1956 and that the issuer has been

assigned the required credit rating must accompany any letter of

credit submitted under this section.

(d) The payment bond or irrevocable letter of credit

provided under this section must state that it is payable to

‘‘The Commonwealth of Pennsylvania’’ as the obligee.

(e) The payment bond or irrevocable letter of credit

provided under this section must provide that if the slot

machine license has been approved and issued by the Board and

the license fee has not been paid in full within 5 business days

following the issuance of the license, the Commonwealth will

have the right to request immediate payment under the payment

bond or irrevocable letter of credit for payment of the slot

machine license fee.

(f) The payment bond or irrevocable letter of credit

provided under this section must state that it will expire upon

the earlier to occur of the following:

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(1) A specified expiry date or any automatically

extended expiry date.

(2) Receipt by the issuer of the Board’s signed

statement that:

(i) The application has been denied.

(ii) The slot machine license has been issued and

10 business days have elapsed following the issuance of the

license.

(iii) The license fee has been paid.

(iv) The applicant has been permitted by the

Board to withdraw its application under § 423.5 (relating to

application withdrawal).

(g) Any expiry date applicable to a payment bond or letter

of credit provided under this section must be at least 12 months

from the date of issuance of the payment bond or letter or

credit. Any provision automatically renewing or extending a

payment bond or letter of credit must do so at intervals of at

least 3 months. Any notice provisions to the Board in a payment

bond or letter of credit applicable to an election by an issuer

not to renew or extend a then current expiry date must provide

that the Board will receive at least 60 days written notice, by

registered mail or overnight courier service, of an election not

to renew or extend.

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(h) This section does not preclude a slot machine license

applicant from substituting or replacing a payment bond or

letter of credit during the period the application is on file

with the Board provided the replacement payment bond or letter

of credit is approved by the Board under this section.

§ 441.6. Public input.

(a) Prior to granting a slot machine license, the Board

will conduct at least one public input hearing.

(b) Public input hearings relating to an application for a

slot machine license shall be held in the municipality where the

licensed facility will be located. The public input hearings

will be organized in cooperation with the municipality.

(c) The Board will develop and post the procedures that

will be used to conduct public input hearings on the Board’s

website (www.pgcb.state.pa.us).

(d) The Board will make public a list of all witnesses

scheduled to testify at a public input hearing at least seven

days prior to the hearing. The list of witnesses will be

updated at least three days prior to the hearing. Additional

witnesses will be posted on the Board’s website

(www.pgcb.state.pa.us) as they are added to the witness list.

§ 441.7. Licensing hearings for slot machine licenses.


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(a) A schedule of licensing hearings for all slot machine

license applicants will be posted on the Board’s website

(www.pgcb.state.pa.us).

(b) The Board will allot each applicant a specified time

for its presentation. The length of the presentations, which

shall be the same for each applicant within each category, will

be established at the prehearing conferences.

(c) At a licensing hearing, an applicant shall appear

before the Board and at all times have the burden to establish

and demonstrate, by clear and convincing evidence, its

eligibility and suitability for licensure and to address the

criteria identified in section 1325(c) of the act (relating to

license or permit issuance).

(d) For the purposes of this section, an applicant’s

demonstration of eligibility must include a showing of:

(1) Compliance with section 1302, 1303, 1304 or 1305

of the act, as applicable.

(2) Compliance with the application requirements in

§ 441.3 (relating to slot machine license application).

(3) Compliance with the license fee payment bond or

letter of credit requirements in § 441.5 (relating to license

fee payment bond or letter of credit requirements).

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(4) Compliance with the diversity requirements in

Chapter 481 (relating to general provisions) and section 1325(b)

of the act.

(e) For the purposes of this section, an applicant’s

demonstration of suitability must include a showing of:

(1) Good character, honesty and integrity in

compliance with section 1310 of the act (relating to slot


(2) Financial fitness in compliance with section 1313


financial fitness requirements).

(3) Operational viability, including:

(i) The quality of the proposed licensed

facility, and temporary land-based facility, if applicable,

including the number of slot machines proposed and the ability

of the proposed licensed facility to comply with statutory,

regulatory and technical standards applicable to the design of

the proposed licensed facility and the conduct of slot machine

operations therein.

(ii) The projected date of the start of

operations of the proposed licensed facility and any accessory

uses such as hotel, convention, retail and restaurant space

proposed in conjunction therewith. Applicants shall provide the

Board with a time line on the deliverability of any proposed

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temporary land-based or phased permanent licensed facilities and

the accessory uses proposed in conjunction therewith.

(iii) The ability of the applicant’s proposed

licensed facility to generate and sustain an acceptable level of

growth of revenue.

(f) For the purposes of this section, an applicant’s

demonstration of how it addresses the criteria identified in

section 1325(c) of the act must include:

(1) The location and quality of the proposed facility,

including, but not limited to, road and transit access, parking

and the facility’s centrality to its anticipated market service

area.

(2) The potential for new job creation and economic

development which are expected to result from granting a license

to an applicant.

(3) The applicant’s good faith plan to recruit, train

and upgrade diversity in all employment classifications in the

facility.

(4) The applicant’s good faith plan for enhancing the

representation of diverse groups in the operation of its

facility through the ownership and operation of business

enterprises associated with or utilized by its facility or

through the provision of goods or services utilized by its

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facility and through the participation in the ownership of the

applicant.

(5) The applicant’s good faith effort to assure that

all persons are accorded equality of opportunity in employment

and contracting by it and any contractors, subcontractors,

assignees, lessees, agents, vendors and suppliers it may employ

directly or indirectly.

(6) The potential for enhancing tourism which is

expected to result from granting a license to the applicant.

(7) The history and success of the applicant in

developing tourism facilities ancillary to gaming development in

other locations if applicable to the applicant.

(8) The degree to which the applicant presents a plan

for the project which will likely lead to the creation of

quality, living-wage jobs and full-time permanent jobs for

residents of this Commonwealth generally and for residents of

the host political subdivision in particular.

(9) The record of the applicant and its developer in

meeting commitments to local agencies, community-based

organizations and employees in other locations.

(10) The degree to which potential adverse effects

which might result from the project, including costs of meeting

the increased demand for public health care and treatment of

problem gamblers and their families, child care, public

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transportation, affordable housing and social services, will be

mitigated.

(11) The record of the applicant and its developer

regarding compliance with:

(i) Federal, State and local discrimination, wage

and hour, disability and occupational and environmental health

and safety laws.

(ii) State and local labor relations and

employment laws.

(12) The record of the applicant in dealing with its

employees and their representatives at other locations.

(13) The applicant’s business probity, experience and

ability.

(14) Areas of deficiency in the applicant’s

application previously identified by the Bureau of Licensing or

Chief Enforcement Counsel that have not been resolved.

(g) The applicant’s demonstration of how it addresses

section 1325(c) of the act and subsection (f) may include

information relating to its affiliates, intermediaries,

subsidiaries or holding companies.

(h) No later than 30 days before the first scheduled

licensing hearing in the category of license for which the

applicant has filed an application, the applicant shall file

with the Board a memorandum identifying all evidence it intends

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to use in support of its presentation before the Board. At the

same time, Category 1 and Category 3 applicants shall serve the

memorandum on the other applicants in the same category. At the

same time, Category 2 applicants shall serve the memorandum on

all other applicants whose proposed facility meets the same

location criteria as the applicant’s proposed facility as

specified in subsection (m)(1)(i)—(iii). The memorandum must

include the following:

(1) The name of the applicant and docket number of the

applicant’s application to which the evidence will relate.

(2) Identification of each standard and criterion in

subsections (f)—(i) to which the evidence will relate.

(3) As to each criterion identified, whether the

evidence will be presented through oral testimony or, the

proffer of documents, or both. If any portion of the evidence

will be presented through oral testimony, the notice must

include the name, address and telephone number of each

testifying witness, the identified criteria about which the

witness will testify and a detailed summary of the witness’

testimony. If any portion of the evidence will be presented

through the proffer of documents, including reports and

exhibits, the memorandum must include a copy of each document to

be proffered and the name, address and telephone number of the

persons who prepared the document.

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(4) If any person identified in paragraph (3) will

testify as an expert, the person’s qualifications, including the

person’s education, experience and training, and a listing of

the other jurisdictions where the person has been qualified as

an expert witness, within the last 5 years, shall be attached to

the notice. A copy of the results or reports of any tests,

experiments, examinations, studies or documents prepared or

conducted by the expert or about which the expert will testify

or which will be relied upon by the expert to render an opinion

shall be attached to the notice.

(i) The Board will serve on all applicants within that

category any expert reports developed for and requested by the

Board that pertains to the applicants.

(j) Applicants, at the time of filing, shall provide the

Board with an electronic version, in a format prescribed by the

Board, of the reports and exhibits provided in paper form.

(k) If an applicant designates any submitted report or

exhibit as confidential under § 401.4 (relating to definitions)

or section 1206(f) of the act (relating to Board minutes and

records), the applicant shall:

(1) Clearly and conspicuously indicate that the report

or exhibit is confidential in both the paper and electronic

format and provide these exhibits separately from the

nonconfidential exhibits.

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(2) Request that the confidential information be

presented to the Board in closed deliberations, under section

1206(a) of the act and provide an explanation of the need for

the designation of confidentiality and closed deliberations or

authorize the release of the report or exhibit in compliance

with section 1206(f) of the act.

(l) Applicants are prohibited from relying upon or

introducing new evidence, including witnesses’ testimony,

reports or exhibits, not identified under subsections (h) or

(m), except in the following circumstances:

(1) Applicants may update or supplement evidence,

including witnesses’ testimony, reports or exhibits to respond

to requests from the Board

(2) Applicants may update or supplement evidence,

including witnesses’ testimony, reports or exhibits to respond

to issues raised subsequent to the filing of the memorandum

required by subsection (h) at a prehearing conference if the

issues could not have been reasonably anticipated by the

applicant.

(m) For Category 2 and Category 3 applicants only, in

addition to the applicant’s presentation of evidence to the

Board relative to its eligibility and suitability for a license,

an applicant may, during its licensing hearing, present evidence

which sets forth a comparison between the applicant and other

216

applicants within the same category with respect to the

standards and criteria in subsections (d)—(g).

(1) Comparisons shall be limited to the following:

(i) For applicants seeking to locate a licensed

facility in a city of the first class, other applicants for a

licensed facility in a city of the first class.

(ii) For applicants seeking to locate a licensed

facility in a city of the second class, other applicants for a

licensed facility in a city of the second class.

(iii) For applicants seeking to locate a licensed

facility in a revenue- or tourism-enhanced location, other

applicants for a licensed facility in a revenue-or tourism-

enhanced location.

(iv) For applicants seeking to locate a licensed

facility in a well-established resort hotel, other applicants

for a licensed facility in a well-established resort hotel.

(2) If an applicant desires to present comparative

evidence under this subsection, the applicant shall, no later

than 20 days prior to the commencement of the first scheduled

licensing hearing in the category of license for which the

applicant has filed an application, file a separate written

notice evidencing the intent with the Board identifying each

other applicant about whom the applicant desires to present

evidence. A copy of the notice shall also be served on the

217

applicants about whom the evidence will be presented and on the

Chief Enforcement Counsel. The notice must include:

(i) The name of the applicant and docket number

of the applicant’s application to which the evidence will

relate.

(ii) Identification of the standards and criteria

in subsections (d)—(g) to which the evidence will relate.

(iii) As to each criterion identified, a copy of

any document or evidence that will be used to support the

comparison to be presented in compliance with subsection (h).

(3) An applicant served with notice under paragraph

(2) may present, during its licensing hearing, comparative

evidence concerning it and the applicant from who notice was

received with respect to the standards and criteria in

subsections (d)—(g). The applicant so served shall have 10 days

following services to file a reply notice with the Board which

contains the information required by paragraph (2). A complete

copy of the reply notice shall be served on the applicant who

initially served notice under paragraph (2) and on the Chief

Enforcement Counsel.

(4) If the applicant plans to present evidence to the

Board concerning another applicant in closed deliberations, the

applicant shall provide notice to the other applicant and

provide any report or exhibit relied upon to the other

218

applicant. The other applicant may be represented in the closed

deliberations.

(n) At the discretion of the Board, an applicant’s

presentation may include:

(1) Oral presentation.

(2) Documentary evidence submissions, including

reports, photographs, audiovisual presentations, exhibits or

testimony of witnesses.

(o) The Board, its designee and Chief Enforcement Counsel

may:

(1) Examine or question the applicant and any

witnesses called by the applicant or the Board regarding their

testimony and any aspect of the applicant’s application and

relevant background.

(2) Recall the applicant and other witnesses called by

the applicant or the Board during the licensing hearing for

further questioning.

(p) A person who testifies at the licensing hearing shall

be sworn and testify under oath.

(q) At its discretion, the Board may terminate, recess,

reconvene and continue the licensing hearing.

(r) Each Category 1 and Category 3 applicant may file a

brief up to 25 pages in length within 10 days of the completion

of the hearing with respect to all applications within its

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category. Each Category 2 applicant may file a brief up to 25

pages in length within 10 days of the completion of the hearing

with respect to all applications that meet the same location

criteria as the applicant as specified in subsection (m)(1)(i)—

(iii). At the prehearing conferences, applicants in any category

may waive the opportunity to file briefs.

(s) At the conclusion of the presentation of all testimony

and evidence, the Board will cause the record to be transcribed.

The transcript and all evidence shall become part of the

evidentiary record for the Board’s consideration. For good cause

shown, the Board may seal portions of the record.

(t) Following submission of the applicants’ briefs, all

applicants will have an opportunity to make final remarks in the

form of oral argument before the Board in a manner and time

prescribed by the Board. At the prehearing conferences,

applicants in any category may waive the opportunity for oral

argument.

(u) Upon the conclusion of the licensing hearings and upon

review of the evidentiary record in its entirety, the Board will

consider, approve, condition or deny the slot machine license

applications. A final order, accompanied by the Board’s written

decision, will be served on the applicants for slot machine

licenses.

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(v) An applicant may appeal the denial of a slot machine

license to the Pennsylvania Supreme Court as provided in the

act.

(w) This subsection pertains exclusively to intervention in

a licensing hearing for a slot machine license under this

section and is not applicable to other hearings before the

Board. The right to intervene in a hearing under this section is

within the sole discretion of the Board.

(1) A person wishing to intervene in a licensing

hearing for a slot machine license shall file a petition in

accordance with this subsection.

(2) A person may file a petition to intervene under

this subsection if the person has an interest in the proceeding

which is substantial, direct and immediate and if the interest

is not adequately represented in a licensing hearing.

(3) Petitions to intervene in a licensing hearing may

be filed no later than 45 days prior to the commencement of the

first scheduled licensing hearing, in the category of license

for which the applicant, in whose hearing the petitioner seeks

to intervene, has filed an application unless, in extraordinary

circumstances for good cause shown, the Board authorizes a late

filing. At the same time the petitioner files its petition with

the Board, a complete copy of the petition to intervene shall be

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served on the Chief Enforcement Counsel and the applicant in

whose licensing hearing the petitioner seeks to intervene.

(4) Petitions to intervene must set out clearly and

concisely the facts demonstrating the nature of the alleged

right or interest of the petitioner, the grounds of the proposed

intervention, the position of the petitioner in the proceeding

and a copy of the written statement to be offered under

paragraph (6). The petitioner shall fully and completely advise

the applicant and the Board of the specific issues of fact or

law to be raised or controverted and cite provisions or other

authority relied on.

(5) The applicant may file an answer to a petition to

intervene, and in default thereof, will be deemed to have waived

any objection to the granting of the petition. If made, answers

shall be filed within 10 days after the date the petition is

filed with the Board, unless for cause the Board prescribes a

different time. A complete copy of the answer to the petition to

intervene shall be served on the Chief Enforcement Counsel and

the petitioner who seeks to intervene.

(6) Except when the Board determines that it is

necessary to develop a comprehensive evidentiary record, the

participation of a person granted the right to intervene in a

licensing hearing will be limited to the presentation of

evidence through the submission of written statements attested

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to under oath. The written statements shall be part of the

evidentiary record.

(x) This section supersedes any conflicting provisions of

Subpart H (relating to practice and procedure) and 1 Pa. Code

Part II (relating to General Rules of Administrative Practice

and Procedure).

§ 441.8. Divestiture.

(a) If the Board determines that a slot machine license

application cannot be approved because the applicant, its

principal or other person who holds a direct or indirect

interest in the applicant or in an affiliate, intermediary,

subsidiary or holding company of the applicant, does not meet a

character or other eligibility criteria required by section 1310


character requirements), or has an ownership or financial

interest that is prohibited by section 1330 of the act (relating

to multiple slot machine license prohibition), the Board may

grant the person up to 120 days following the determination to

completely divest his interest in the applicant or its

affiliate, intermediary, subsidiary or holding company.

Source: The provisions of this § 441.6 amended February 18, 2006, effective February 2, 2006, 36 Pa.B. 909; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841. Source: The provisions of this § 441.7 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

223

(b) The person shall notify the Board of his intention to

divest within 30 days of notice from the Board of the

opportunity to divest. The Board may extend this time period at

its discretion.

(c) Failure to divest within 120 days, or within the time

period prescribed by the Board, constitutes a per se

disqualification of the applicant to receive a slot machine

license.

(d) The terms of divestiture will be approved by the

Board.

(e) The Board will not approve a divestiture if the

compensation received for the divested interest exceeds the

value of the interest.

(f) Following divestiture, the Board will reconsider the

applicant’s suitability for licensure in an expedited procedure.

§ 441.9. Approval of a slot machine license.

(a) An applicant for a slot machine license shall prove by

clear and convincing evidence:

(1) The financial stability and integrity of the

applicant and its affiliates, intermediaries, subsidiaries and

holding companies in accordance with section 1313 of the act


224

(relating to slot machine license application financial fitness

requirements).

(2) The good character, honesty and integrity of the

applicant and its affiliates, intermediaries, subsidiaries,

holding companies and principals in accordance with section 1310


character requirements).

(b) For Category 1 slot machine applications, the State

Horse Racing Commission or the State Harness Racing Commission

may submit additional information to the Board if it believes

the information will assist the Board in making a determination

relating to the operational, financial or character fitness of

the applicant.

(c) The Board may issue a slot machine license under this

chapter if it determines that the applicant:

(1) Has demonstrated that the applicant will establish

and is likely to maintain a financially successful, viable and

efficient business operation and will likely be able to maintain

a steady level of growth of revenue to the Commonwealth.

(2) Is of good character, honesty and integrity.

Source: The provisions of this § 441.9 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended July 1, 2006, effective June 15, 2006, 36 Pa.B. 3407; amended April 21, 2007, effective March 27, 2007, 37 Pa.B.1841.

225

§ 441.10. Notification of anticipated or actual changes in

principals or key employees.

Each slot machine applicant or licensee shall notify the

Board, in writing, as soon as it becomes aware, of the proposed

appointment, appointment, proposed nomination, nomination,

election, hiring, intended resignation, resignation, removal,

firing, incapacitation or death of any person required to be

licensed as a principal or key employee under Chapter 433 and §

435.2 (relating to principal licenses; and key employee

license). The notice must be addressed to the Bureau of

Licensing.

§ 441.11. Notification of new financial sources.

Each slot machine applicant or licensee shall notify the

Board, in writing, as soon as it becomes aware that it intends

to enter into a transaction which may result in any new

financial backers. The notice shall be sent to the Bureau of

Licensing and the Bureau of Corporate Compliance and Internal

Controls.

§ 441.12. Agreements.

Source: The provisions of this § 441.10 amended December 31, 2005, effective December 15, 2005, 35 Pa.B. 7085; amended February 4, 2006, effective January 19, 2006, 36 Pa.B. 681; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841. Source: The provisions of this § 441.11 amended February 4, 2006, effective January 19, 2006, 36 Pa.B. 681; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

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(a) Maintaining agreements. Each slot machine applicant

and licensee shall maintain all of the following:

(1) A fully signed copy of every written agreement.

(2) Records with respect to any oral agreement.

(b) Changes or amendments to agreements. Slot machine

applicants and licensees shall maintain changes or amendments to

the terms of the agreements subject to subsection (a).

(c) Filing agreements. Each slot machine licensee shall

submit the following to the Board:

(1) A fully signed copy of all written agreements with

manufacturer applicants or licensees, manufacturer designee

applicants or licensees, supplier applicants or licensees and

with vendors subject to certification under § 437.1(b) (relating

to general vendor requirements).

(2) A precise written description of any oral

agreement, in accordance with subsection (f), with manufacturer

applicants or licensees, supplier applicants or licensees and

vendors subject to certification under § 437.1(b).

(3) A fully signed copy of all written agreements

relating to land and real estate.

(d) Changes or amendments to filed agreements. Slot machine

applicants and licensees shall file all changes or amendments to

the terms of the agreements subject to subsection (c).

227

(e) Additional agreements. Notwithstanding the requirements

of subsections (c) and (d), slot machine applicants or licensees

may be required to submit a copy of any other written agreement,

change or amendment or a precise written description of any

other oral agreement, change or amendment as requested by the

Board.

(f) Oral agreements. A written description submitted under

this section shall provide, at a minimum, the following:

(1) The nature of the goods or services to be provided

to the slot machine licensee or applicant.

(2) The full name and business address of the non-slot

machine licensee or applicant party to the agreement.

(3) The duration of the agreement, or if provided in

the agreement, the specific date or dates of performance.

(4) The financial terms of the agreement.

(5) A description of the goods or services provided,

including the expected duration and compensation.

§ 441.13. Board review of agreements and records of agreements.

(a) The Board may review an agreement and record maintained

or filed under § 441.12 (relating to agreements) to determine

the following:

Source: The provisions of this § 441.12 amended February 4, 2006, effective January 19, 2006, 36 Pa.B. 681; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

228

(1) The reasonableness of the terms of the agreement,

including the terms of compensation.

(2) The qualifications of the persons involved in and

associated with the agreement, after which the Board may make a

finding as to the suitability of the persons to be involved or

associated with the slot machine applicant or licensee.

(3) Whether any person involved therein or associated

therewith is providing or likely to provide goods or services

to, or conducting or likely to conduct business with, a slot

machine applicant or licensee or its employees which requires a

license, permit, certification, registration or notification

under act or this part, in which case the Board will direct that

the appropriate application be promptly filed by the person.

(4) Whether any action is desirable or necessary to

regulate, control or prevent economic concentration in any

vendor industry or to encourage or preserve competition in any

vendor industry.

(b) If the Board finds that an agreement is not in the

public interest or is inimical to the interest of gaming in this

Commonwealth, the Board may, by order, require the termination

of the agreement or association of any person associated

therewith or pursue any remedy or combination of remedies

provided for in the act or this part. If the agreement or

association is not thereafter promptly terminated, the Board may

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pursue any remedy or combination of remedies provided for in the

act or this part.

(c) Each agreement maintained or filed under § 441.12 shall

be deemed to include a provision for its termination without

liability on the part of the slot machine applicant or licensee,

or on the part of any qualified party to the agreement or any

related agreement the performance of which is dependent upon the

agreement, if the Board orders that the agreement be terminated

in accordance with subsection (b).

§ 441.14. Master purchasing and disbursement report.

(a) Each slot machine license applicant or licensee shall

generate a monthly Master Purchasing and Disbursement Report for

all vendor transactions. The report shall be submitted to the

Bureau of Licensing no later than the 22nd calendar day of

following month. The report must include the following

information:

(1) A payee register listing alphabetically by payee

all nonpayroll transactions drawn by the slot machine applicant

or licensee, including wire transfers and credits to vendors,

and the following information next to the name of each payee:

(i) The vendor certification or registration

number or exemption code.


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(ii) The amount of the individual disbursement or

credit.

(iii) The date of the individual disbursement or

credit.

(iv) The subtotal of disbursements or credits by

payee.

(v) The grand total of all disbursements made

during the reporting period.

(vi) The total summarizing all previous payments

in the last 12 months beginning from the first payment date.

(2) A payee register listing alphabetically by payee

all transactions drawn by any affiliate, intermediary,

subsidiary, holding company or agent of the slot machine

applicant or license for goods or services that benefit the slot

machine applicant or license, including wire transfers and

credits to vendors, and the following information next to the

name of each payee:


number or exemption code.

(ii) The amount of the individual disbursement or

credit.

(iii) The date of the individual disbursement or

credit.

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(iv) The subtotal of disbursements or credits by

payee.

(v) The grand total of all disbursements made

during the reporting periods.

(vi) The total summarizing all previous payments

in the last 12 months beginning from the first payment date.

(3) A register listing alphabetically by vendor all

transactions, including wire transfers and credits, in which the

slot machine applicant or licensee itself acted in the capacity

of a vendor by providing goods or services. The register must

include:


number or exemption code of the vendor to whom the goods or

services were provided.

(ii) The date of each individual transaction.

(iii) The amount of each individual transaction.

(iv) A general description of the type of goods

or services provided.

(v) By vendor, subtotals of payments or credits

received by the slot machine licensee or applicant or

disbursements or credits made by the slot machine licensee or

applicant during the reporting period.

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(vi) By vendor, totals of payments or credits

received or disbursements or credits made by the slot machine

licensee or applicant within the applicable 12-month period.

(b) The reports shall be signed by the slot machine

applicant or licensee and transmitted to the Bureau of Licensing

by means of electronic data transmission or in a form prescribed

by the Board.

§ 441.15. Slot machine license issuance bond requirement.

(a) Upon the issuance of a slot machine license, a slot

machine licensee shall post an original payment bond in the

amount of $1,000,000.

(b) Unless otherwise required by the Board, the payment

bond must comply with the following:

(1) The payment bond must be issued by a surety

company that is both licensed by the Insurance Department and

assigned a credit rating within the three highest categories,

without regard to numerics or other modifiers, by Moody’s or

Standard & Poor’s, or upon the discontinuance of Moody’s or

Standard & Poor’s, by another Nationally recognized rating

service. Proof that the surety is licensed by the Insurance

Department and has been assigned the required credit rating must

accompany any payment bond submitted under this section.


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(2) A slot machine licensee shall submit its proposed

payment bond to the Board prior to the issuance of a slot

machine license. The Board will investigate and approve both the

proposed terms of the payment bond and the surety that will

issue the payment bond.

(3) The payment bond must state that it is payable to

‘‘The Commonwealth of Pennsylvania’’ as the obligee for

immediate payment of the slot machine licensee’s financial

obligations to the Commonwealth under the act and as security to

guarantee that the slot machine licensee faithfully makes the

payments, keeps its books and records, makes reports and

conducts its operations in conformity with the act, this part

and the rules and orders promulgated by the Board.

(4) A payment bond issued in accordance with this

section will remain in full force and effect throughout the

period of time that the slot machine license is in effect. If a

bond is canceled and the slot machine licensee fails to file a

new bond with the Board in the required amount on or before the

effective date of the cancellation, the licensee’s license will

be revoked or suspended.

(5) Any notice provision to the Board in a payment

bond applicable to an election by a surety to cancel a then

current payment bond must provide that the Board will receive at

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least 30 days written notice, by registered mail or overnight

courier service, of the surety’s election to cancel.

(c) The Board may demand that the slot machine licensee

post a new payment bond upon the occurrence of any of the

following:

(1) Liability on the existing payment bond is

discharged or reduced by judgment rendered, payment made or

similar occurrence.

(2) The Board determines that the surety is no longer

satisfactory.

(3) The slot machine licensee requests the right to

post a new payment bond.

(4) The Board receives notice that the payment bond

will be cancelled.

§ 441.16. Slot machine license term and renewal.

(a) A slot machine license issued under this chapter shall

be valid for 1 year from the date of Board approval.

(b) A renewal application shall be submitted to the Board

at least 60 days prior to the expiration of a slot machine

license.

(c) A slot machine license for which a completed renewal

application has been received by the Board will continue in


235

effect until the Board sends written notification to the holder

of the slot machine license that the Board has approved or

denied the slot machine license renewal application.

§ 441.17. Change in ownership or control of slot machine

licensee and multiple slot license prohibition.

(a) A slot machine licensee shall notify the Board prior

to or immediately upon becoming aware of any proposed or

contemplated change in ownership of the slot machine licensee by

a person or group of persons acting in concert which involves

any of the following:

(1) More than 5% of a slot machine licensee’s

securities or other ownership interests.

(2) More than 5% of the securities or other ownership

interests of a corporation or other form of business entity that

owns, directly or indirectly, at least 20% of the voting or

other securities or other ownership interest of the slot machine

licensee.

(3) The sale, other than in the normal course of

business, of a slot machine licensee’s assets.

(4) Any other transaction or occurrence deemed by the

Board to be relevant to license qualification.


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(b) Notice to the Board and Board approval shall be

required prior to completion of any proposed change of ownership

of a slot machine licensee that meets the criteria in subsection

(a).

(c) A person or group of persons acting in concert desiring

to acquire an interest in a slot machine licensee that meets the

criteria in subsection (a) shall submit an application for

approval of the transfer which shall include the following:

(1) An application for transfer on a form prescribed

by the Board.

(2) A copy of all documents, contracts and agreements

related to the transfer.

(3) A principal license application for each person

seeking to acquire an interest that does not currently hold a

principal license.

(4) Application fees specified by the Board to cover

the cost of investigations of the transfer application and

persons seeking to acquire an interest. The applicant for the

transfer shall be responsible for and remit to the Board any

costs associated with the investigation of the transfer that

exceed the amount covered by the fees.

(d) A person or group of persons acting in concert that

acquires more than 20% of a slot machine licensee’s securities

or other ownership interests or purchases the assets, other than

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in the normal course of business, of any slot machine licensee

shall independently qualify for a license in accordance with the

act and this part and shall pay the licensing fee required by

section 1209 (relating to slot machine license fee), except as

otherwise required by the Board.

(e) The requirements in subsections (a) – (d) do not apply

to:

(1) An underwriter who will hold a security for less

than 90 days.

(2) An institutional investor, if:

(i) The institutional investor holds less than

10% of the securities or other ownership interests referred to

in subsection (a)(1) or (2).

(ii) The securities or interests are publicly

traded securities.

(iii) The institutional investor’s holdings if

the securities were purchased for investment purposes only and

the institutional investor files a certified statement with the

Board stating that the institutional investor has no intention

of influencing or affecting, directly or indirectly, the affairs

of the slot machine licensee.

(f) In accordance with section 1330 of the act (relating to

multiple slot machine license prohibition), a slot machine

licensee, its affiliates, intermediaries, subsidiaries and

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holding companies, may not possess an ownership or financial

interest in any other slot machine licensee or in any other

person eligible to apply for a Category 1 slot machine license

or its affiliates, intermediaries, subsidiaries or holding

companies that exceeds 33.3%.

(g) Nothing in subsection (f) prevents a slot machine

licensee from possessing ownership or financial interests of

33.3% or less, in multiple slot machine licensees or in persons

eligible to apply for a Category 1 slot machine license or its

affiliates, intermediaries, subsidiaries or holding companies.

(h) If a slot machine licensee, its affiliates,

intermediaries, subsidiaries or holding companies has an

ownership or financial interest in another slot machine licensee

that is in violation of subsection (f), the slot machine

licensee will be required to divest that interest which is in

excess of 33.3% in compliance with section 1330 of the act.

(i) Nothing in this section concerning ownership or

financial interests applies to contractual interests including

those in the nature of management contracts, options to purchase

exercisable after a license has been issued or leases.

§ 441.18. Employee status report.


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(a) A slot machine licensee shall maintain a complete,

accurate and current record of each employee that includes the

information in subsection (b)(1).

(b) Each month each slot machine licensee shall generate a

monthly employee status report of the slot machine licensee’s

and management company’s employees. The report shall be

submitted to the Bureau of Licensing no later than the 15th

calendar day of the following month. The report must include the

following information:

(1) An alphabetical listing of the individuals

currently employed by the slot machine licensee and the

management company and the following information with respect to

each employee listed:

(i) The name of the employee.

(ii) The address of record of the employee on

file with the slot machine licensee.

(iii) The employee’s license, permit or

registration number.

(iv) The employee’s title or position.

(v) Whether the employee is full-time or part-

time.

(vi) The date of hire of the employee.

(vii) The access code, if any, assigned to the

employee, which designates the restricted areas that the

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employee is permitted to enter and remain in for the purposes of

performing his normal duties.

(2) The total number of persons employed by the slot

machine applicant or licensee and management company during the

preceding month.

(3) An alphabetical listing of all employees who have

discontinued or terminated employment with the slot machine

licensee or management company during the preceding month and

the following information with respect to each employee listed:

(i) The information listed in paragraph (1)(i)—

(vii).

(ii) The date on which the employee discontinued

or terminated employment with the slot machine licensee or

management company.

(4) The total number of employees who have

discontinued or terminated employment with the slot machine

licensee and management company during the preceding month.

(5) The date on which the information provided in the

report was compiled.

(c) The reports shall be signed by the slot machine

licensee and transmitted to the Bureau of Licensing by means of

electronic data transmission or in a form prescribed by the

Board.

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(d) The Board may request interim employee status reports

from a slot machine licensee or management company.

§ 441.19. Notice of employee misconduct and offenses.

(a) A slot machine licensee or management company shall

notify the Board within 5 days of the termination of an

employee, of any information surrounding the termination of the

employee that could be cause for suspension or revocation of the

employee’s license, permit or registration or any enforcement

action related thereto.

(b) The notice must include the following information:

(1) The employee’s name.

(2) The address of record of the employee on file with

the slot machine licensee.

(3) The employee’s license, permit or registration

number.

(4) The employee’s title or position.

(5) A summary of the incident or misconduct by the

employee, including any violations of this part or the act.

(6) The date of termination of the employee.

(7) The access code, if any, assigned to the employee,

which designates the restricted areas that the employee was

Source: The provisions of this § 441.18 amended February 18, 2006, effective February 2, 2006, 36 Pa.B. 909; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

242

permitted to enter and remain in for the purposes of performing

his normal duties.

(c) Notwithstanding subsection (a), a slot machine licensee

shall, within 24 hours, notify the Board upon learning of the

arrest, charging, indictment or conviction of any of its

affiliates, intermediaries, subsidiaries, holding companies,

principals, key employees, permittees or registrants, for any of

the following:

(1) An offense or violation under the act or this

part.

(2) The willful and knowing violation or attempt to

violate an order of the Board by an employee.

(3) An offense or violation of another applicable law

which would otherwise disqualify the person from holding a

license, permit or registration.

(4) An offense or violation of a criminal law or

ordinance of the United States or this Commonwealth or a

comparable offense or violation in other states or foreign

jurisdictions.

§ 441.20. Slot machine license agreements.

Source: The provisions of this § 441.19 amended July 22, 2006, effective June 28, 2006, 36 Pa.B. 3939; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. 1841.

243

(a) An agreement or noncontractual relationship between a

person and a slot machine licensee which provides for a payment

to the person or an arrangement under which a person receives

payment, however defined, of a direct or indirect interest,

percentage or share of earnings, profits or receipts from slot

machines and associated equipment of a licensed facility, shall

require Board approval, regardless of the amount or percentage.

(b) An agreement will not receive Board approval if it, or

if it when viewed in the aggregate as related to any of the

persons who receive payment as a result of the agreement,

creates a monopolization of economic opportunities or control of

the licensed gaming facilities in this Commonwealth under

§ 421.5 (relating to monopolization of economic opportunities

and control).

(c) Notwithstanding the definition of a principal, persons

who receive payments under the agreements or arrangements shall

be licensed by the Board prior to receiving the payments, unless

the agreement or person is exempted under subsection (d).

(d) The following are exempt from the requirements of this

section:

(1) Fixed sum and hourly payments.

(2) Junket agreements.

(3) Employee profit sharing agreements administered by

class or category.

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(4) Management contracts.

(5) Slot system agreements for wide area progressive

slot systems.

(6) Horsemen’s organizations.

(7) Labor organizations.

(8) Other agreements determined by the Board.

§ 441.21. Management contracts.

Notwithstanding any provision to the contrary in the

management contract, each slot machine licensee shall be jointly

and severally liable for any act or omission by the management

company in violation of the act or this part, regardless of

actual knowledge by the slot machine licensee of the act or

omission.

§ 441.22. Category 1 slot machine licensees.

(a) General. A Category 1 license, including a Conditional

Category 1 license, may be issued to any qualifying legal

business entity within an organization, if a legal business

entity within the organization has been approved or issued a

license from either the State Horse Racing Commission or the

State Harness Racing Commission to conduct thoroughbred or


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harness race meetings. If a Category 1 license is issued to a

legal business entity within an organization, all requirements,

duties and obligations imposed by this part or the act on the

licensed racing entity or a licensed racetrack shall be deemed

to be requirements imposed on any legal business entity within

the organization that has been approved or issued a Category 1

license. If more than one licensed racing entity, on July 5,

2004, was conducting a racing meet at the same licensed

racetrack where an organization has been issued a Category 1

slot machine license, section 1303 of the act (relating to

additional category 1 slot machine license requirements) applies

to each licensed racing entity at the licensed racetrack.

(b) Specific. If a Category 1 license is issued to a legal

business entity in an organization, any legal business entity

within the organization that has been approved or issued a

Category 1 license shall be responsible for, in particular, but

not limited to, complying with:

(1) Section 1404 of the act (relating to distributions

from licensee’s revenue receipts).

(2) Section 1405 of the act (relating to Pennsylvania

Race Horse Development Fund).

(3) Distribution allocations received from the

Pennsylvania Race Horse Development Fund under section 1406 of

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the act (relating to distributions from Pennsylvania Race Horse

Development Fund).

(i) Funds designated for purses under section

1406(a)(1)(i) of the act shall be deposited into an account

established by and for the benefit of the horsemen within 36

hours of receipt from the Commonwealth.

(ii) Funds designated for health and pension

benefits under section 1406(a)(1)(iii) of the act shall be

deposited into an account established under the rules and

regulations of the horsemen’s organization within 36 hours of

receipt from the Commonwealth.

§ 441.23. Category 3 slot machine licensees.

(a) To qualify as a well-established resort hotel with

substantial year-round recreational guest amenities, the resort

hotel must offer on its premises a complement of amenities

characteristic of a well-established resort hotel, including but

not limited to the following:

(1) Sports and recreational activities and facilities

such as a golf course or golf driving range.

(2) Tennis courts

(3) Swimming pools or a water park.

(4) A health spa.


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(5) Meeting and banquet facilities.

(6) Entertainment facilities.

(7) Restaurant facilities.

(8) Downhill or cross-country skiing facilities.

(9) Bowling lanes.

(10) Movie theaters.

(b) A Category 3 slot machine applicant shall submit, as

part of its application and its internal controls required under

Chapter 465 (relating to accounting and internal controls), a

plan detailing how the applicant will monitor the gaming area to

ensure compliance with Chapters 503, 511 and 513 (relating to

self-exclusion; persons required to be excluded; and underage

gaming) and that only the following persons are permitted to

enter the gaming area:

(1) Registered overnight guests.

(2) Patrons of one or more amenities.

(3) Authorized employees.

(4) Other persons authorized by the Board.

(c) Individuals holding a valid seasonal or year-round

membership, which has been approved by the Board and entitles

the individual to use one or more of the amenities at the well-


248

established resort hotel holding the Category 3 slot machine

license, may be allowed on the gaming floor at any time. The

Board will base its approval of a membership on the duration of

the membership, the amenities covered by the membership and

whether the fee charged for the membership represents the fair

market value for the use of the amenity or amenities.

(d) A patron of an amenity at a well-established resort

hotel holding a Category 3 slot machine license may be permitted

unlimited access to the gaming floor for one 24-hour period

within 72 hours of the use of the amenity.

CHAPTER 443. (RESERVED).

Subpart D. RECORDKEEPING


CHAPTER 451a. RECORDKEEPING REQUIREMENTS

§ 451a.1. Recordkeeping generally.

(a) All manufacturer, supplier, junket enterprise, management company and slot machine

licensees and all registered and certified vendors shall maintain adequate records of business

operations which shall be made available to the Board upon request. These records shall be kept

onsite in this Commonwealth in a place secure from theft, loss or destruction or at another secure

location approved by the Board. These records include:

(1) Correspondence with the Board and other local, Commonwealth and Federal

governmental agencies.

(2) Correspondence concerning gaming equipment with a manufacturer, supplier,

management company or slot machine licensee.

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(3) Copies of all promotional material and advertising.

(4) A personnel file on each current and former employee.

(5) Financial records of all transactions concerning slot machines and associated

equipment with a manufacturer, supplier, management company or slot machine licensee.

(6) Copies of all tax returns, reports and other tax documents filed with a taxing

entity of the Federal government, the Commonwealth or local taxing entity within this

Commonwealth for 7 years or a longer period as prescribed by the taxing entity.

(7) Copies of all general accounting records.

(b) Except as provided in subsection (a)(6) regarding tax documents, the records listed in

subsection (a) shall be maintained for at least 5 years.

Subpart E. SLOT MACHINE TESTING, CERTIFICATION AND CONTROL

CHAPTER 461. SLOT MACHINES AND ASSOCIATED EQUIPMENT


The following words and terms, when used in this subpart,



Double-up - An optional wager on a slot machine in which

the player has a mathematically equal probability of winning or

losing the wager.

Modification - A change or alteration in a slot machine or

associated equipment that affects the manner or mode of play or

operation of the slot machine or associated equipment.

(i) The term includes a change to control or graphics

programs and to the theoretical hold percentage.

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(ii) In the case of slot machines, the term does not

include:

(A) A conversion.

(B) Replacement of one approved component with

an identical component.

(iii) In the case of a wide-area progressive system,

the term includes:

(A) A change in a system name or theme.

(B) A change in the odds to win the progressive

payout.

(C) A change in the reset amount.

(D) A change in the progessive rate.

(E) A change in the wager necessary to win the progressive payout. Progressive – A slot machine that offers a jackpot that may

increase in value based upon wagers as the slot machine is

played. Progressive slot machines may stand alone, be linked at

a licensed facility or be part of a wide area progressive

system.

Randomness - The observed unpredictability and absence of

pattern in a set of elements or events that have definite

probabilities of occurrence.

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Skill - The application of intelligence and specific

knowledge to achieve the best result when a slot machine offers

a choice of options during game play.

Slot Lab - The Gaming Laboratory Operations Bureau of the

Board.

Strategy choice - A particular play option on a slot

machine that requires the use of skill to consistently achieve

the best result.

Theme - A concept, subject matter and methodology of

design.

Wager - Placing at risk in a slot machine a coin, bill,

ticket, gaming voucher, coupon, or similar object or, upon

payment of any consideration, including the use of cashless

funds transfer systems and external bonusing systems.

§ 461.2. Protocol requirements.

In accordance with section 1324 of the act (relating to

protocol information), manufacturer licensees and supplier

licensees shall be required to enable all slot machine terminals

to communicate with the Department’s central control computer

for the purpose of transmitting auditing program information and

activating and disabling slot machine terminals.

§ 461.3. Testing and approval generally.

(a) In accordance with section 1320 of the act (relating

to slot machine testing and certification standards), the Board

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will determine the manner and scope in which slot machine

terminals are to be tested and approved prior to operation and

use in a licensed facility in this Commonwealth.

(b) All slot machines operated in this Commonwealth must

be approved by the Board.

(c) The Board has the authority to require one or more of

the following procedures with respect to testing and certifying

a slot machine:

(1) An abbreviated testing and approval process in

accordance with § 461.4(f) (relating to submission for testing

and approval).

(2) Testing and approval in accordance with

§ 461.4(h).

(3) Utilize the services of slot machine testing

facility to conduct the testing until a slot machine testing

facility is created by the Board.

(d) On or before July 5, 2007, the Board will establish

and maintain an independent slot machine testing facility. The

cost of establishment and operation of the facility shall be

paid by each manufacturer licensee in accordance with a schedule

adopted by the Board.

(e) The Board will require payment of all costs for the

testing and approval of all slot machines and associated

equipment through procedures prescribed by the Board.

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(f) The Board will require a manufacturer licensee seeking

approval of a slot machine or associated equipment to pay all

costs of transportation, inspection and testing.

§ 461.4. Submission for testing and approval.

(a) A slot machine or associated equipment identified in

subsection (b) (collectively referred to as “products” or

“equipment, device or software”), or a modification thereto, may

not be offered for sale, lease or distribution for ultimate use

by a slot machine licensee in this Commonwealth unless a

prototype identical in all mechanical, electrical, electronic

and other respects has been tested and approved by the Board.

When an applicant for, or holder of, a slot machine license

develops software or a system that is functionally equivalent to

any of the slot systems enumerated in subsection (b), that

software or system shall be subject to the testing and approval

process of this subpart to the same extent as if the software or

system were developed by an applicant for, or holder of, a

manufacturer license. Any reference in this subpart to the

responsibilities of a manufacturer applies to an applicant for,

or holder of, a slot machine license developing software or

systems subject to testing and approval under this subpart.

(b) For the purposes of this section, slot machines and

associated equipment which shall be submitted for testing and

Board approval include:

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(1) Slot machines, including bill validators and

printers.

(2) Slot monitoring systems, to the extent the system

interfaces with slot machines and related systems.

(3) Casino management systems, to the extent the

system interfaces with slot machines and related systems.

(4) Player tracking systems, to the extent the system


(5) Progressive systems, including wide area

progressive systems.

(6) Gaming voucher systems.

(7) External bonusing systems.

(8) Cashless funds transfer systems.

(9) Machines performing gaming voucher coupon or

jackpot payout transactions.

(10) Coupon systems, to the extent the system


(11) Other associated equipment as required by the

Board.

(c) Slot machine prototypes and associated equipment

prototypes, and any modifications thereto, which are subject to

testing and approval under this section will be evaluated by the

Board for overall operational integrity and compliance with the

act, this subpart and technical standards adopted by the Board.

255

In addition, with regard to any slot machine, or modification

thereto, the Board will test for compatibility and compliance

with the central control computer and protocol specifications

approved by the Department including the ability to communicate

with the central control computer for the purpose of

transmitting auditing program information, real time information

retrieval and activation and disabling of slot machines.

(d) The Board may periodically prescribe for completion by

an applicant for, or holder of, a manufacturer license a

standard product submission checklist, together with

supplemental product specific submission checklists, to

facilitate the examination and analysis of a prototype or

modification.

(e) The Board may periodically prescribe certification

requirements, to be executed by the chief engineer of the

applicant for, or holder of, a manufacturer license or the

engineer in charge of the division of the manufacturer

responsible for producing the product submitted, unless

otherwise noted, to obtain sufficient assurances from the

manufacturer that the product was properly and completely tested

by the manufacturer prior to its submission to the Board.

(f) Notwithstanding the terms of subsection (c), the Board

may utilize an abbreviated testing and approval process in

256

accordance with section 1320 of the act (relating to slot

machine testing and certification standards).

(g) When an applicant for, or holder of, a manufacturer

license seeks to utilize, during the applicable period, the

abbreviated testing and approval process for a slot machine

prototype, associated equipment prototype or any modification

thereto, it shall submit to the Board's Slot Lab the following:

(1) A prototype of the equipment, device or software

accompanied by a written request for abbreviated testing and

approval which identifies the jurisdiction within the United

States upon which the applicant for, or holder of, a

manufacturer license proposes the Board rely (“named

jurisdiction”). The manufacturer shall transport the equipment,

device or software at its own expense and shall deliver same to

the offices of the Board's Slot Lab.

(2) A certification executed by the chief engineer of

the applicant for, or holder of, a manufacturer license or the

engineer in charge of the division of the manufacturer

responsible for producing the equipment, device or software

submitted (“professional”) asserting that:

(i) The specific prototype or modification is

identical in all mechanical, electrical, electronic and other

respects to one which has been tested and approved by the

257

testing facility operated by the named jurisdiction or a private

testing facility on behalf of the named jurisdiction.

(ii) The manufacturer is licensed in good

standing in the named jurisdiction and that the subject product

has all regulatory approvals prerequisite to sale or

distribution in the named jurisdiction.

(iii) In the professional’s opinion, the testing

standards of the named jurisdiction are comprehensive and

thorough and provide similar adequate safeguards as those

required by this subpart.

(iv) In the professional’s opinion, the

equipment, device or software complies with the act, this

subpart and technical standards adopted by the Board including

requirements related to the central control computer.

(3) An executed copy of a current product submission

checklist, and any product specific supplemental submission

checklists applicable to the submitted equipment, device or

software unless a substantially similar checklist was filed with

the named jurisdiction and is included in the submission package

required by paragraph (4).

(4) Copies of the submission package, and any

amendments thereto, filed with the named jurisdiction, copies of

any correspondence, review letters or approvals issued by the

testing facility operated by the named jurisdiction or a private

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testing facility on behalf of the named jurisdiction and, as

applicable, a copy of the final regulatory approval issued by

the named jurisdiction.

(5) The manufacturer shall disclose with specificity

to the Board any conditions or limitations placed by the named

jurisdiction on the operation or placement of the equipment,

device or software at the time of approval or subsequently

thereafter.

(6) When a slot machine prototype, or a modification

thereto is submitted, the manufacturer shall submit a complete,

comprehensive and technically accurate description of the manner

in which the slot machine was tested for compatibility and

compliance with the central control computer and protocol

specifications approved by the Department including the ability

to communicate with the central control computer for the purpose

of transmitting auditing program information, real time

information retrieval and activation and disabling of slot

machines.

(7) Any hardware, software and other equipment,

inclusive of technical support and maintenance applicable

thereto, required by the Board's Slot Lab to conduct the

abbreviated testing and approval process contemplated by the


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The testing equipment and services required by this paragraph

shall be provided at no cost to the Board.

(8) Additional documentation requested by the Board.

(h) When an applicant for, or holder of, a manufacturer

license seeks Board approval of a slot machine prototype,

associated equipment prototype, or any modification thereto for

which the abbreviated testing process in subsection (f) is not

applicable, it shall submit to the Board's Slot Lab the

following:

(1) A prototype of the equipment, device or software

accompanied by a written request for testing and approval. The

manufacturer shall transport the equipment, device or software

at its own expense and deliver it to the offices of the Board's

Slot Lab in accordance with instructions provided.

(2) Certifications required under subsection (e)

providing assurances from the manufacturer that the product was

properly and completely tested and emulated by the manufacturer

prior to its submission to the Board and that the product,

device or software complies with the act, this subpart and

technical standards adopted by the Board, including any

applicable requirements related to the central control computer.

(3) An executed copy of a current product submission

checklist, and any product specific supplemental submission

260

checklists applicable to the submitted equipment, device or

software.

(4) A complete, comprehensive and technically

accurate description of the equipment, device or software,

accompanied by applicable diagrams, schematics and

specifications, together with documentation with regard to the

manner in which the product was tested and emulated by the

manufacturer prior to its submission to the Board.

(5) Any hardware, software and other equipment,

inclusive of technical support and maintenance applicable

thereto, required by the Board's Slot Lab to conduct the testing

and approval process contemplated by the act, this subpart and

technical standards adopted by the Board. The testing equipment

and services required by this paragraph shall be provided at no

cost to the Board.

(6) In the case of a slot machine prototype the

following additional information shall be submitted:

(i) A copy of all executable software, including

data and graphics information, on electronically readable,

unalterable media.

(ii) A copy of all source code for programs that

cannot be reasonably demonstrated to have any use other than in

a slot machine, on electronically readable, unalterable media.

261

(iii) A copy of all graphical images displayed on

the slot machine including reel strips, rules, instructions and

paytables.

(iv) A mathematical explanation of the

theoretical return to the player, listing all assumptions, all

steps in the formula from the first principles through to the

final results of all calculations including bonus pays and,

where a game requires or permits player skill in the theoretical

derivations of the payout return, the source of strategy.

(v) Hardware block diagrams of the major

subsystems.

(vi) A complete set of schematics for all

subsystems.

(vii) A wiring harness connection diagram.

(viii) A technical and an operator manual.

(ix) A description of all security methodologies

incorporated into the design of the slot machine including, when

applicable, encryption methodology for all alterable media,

auto-authentication of software and recovery capability of the

slot machine for power interruption.

(x) For all meters required by this subpart or

technical standards adopted by the Board, a cross reference of

product meters to the required meters, if necessary.

262

(xi) A description of all tower light functions

indicating the corresponding condition.

(xii) A description of all error conditions and

the corresponding action required by the operator.

(xiii) A description of the use and function of

all available dip switch settings or configurable options.

(xiv) A description of the pseudo random number

generator or generators used to determine game outcome,

including a detailed explanation of operational methodology, and

a description of the manner by which the pseudo random number

generator and random number selection process is impervious to

outside influences, interference from electro-magnetic, electro-

static, and radio frequencies, and influence from ancillary

equipment via data communications. Test results in support of

representations shall be submitted. For the purposes of this

section, “game outcome” means the results of a wager.

(xv) Specialized hardware, software or testing

equipment, inclusive of technical support and maintenance,

needed to complete the evaluation, which may include an emulator

for a specified microprocessor, PCs, extender cables for CPU

boards, target reel strips and door defeats. The testing

equipment and services required by this paragraph shall be

provided at no cost to the Board.

263

(xvi) A compiler, or reasonable access to a

compiler, for the purpose of building applicable code modules.

(xvii) All program storage media including

eproms, eeproms, and any type of alterable media for all slot

machine software.

(xviii) Technical specifications for any

microprocessor or microcontroller.

(xix) A complete, comprehensive and technically

accurate description of the manner in which the slot machine was

tested for compatibility and compliance with the central control

computer and protocol specifications approved by the Department

including the ability to communicate with the central control

computer for the purpose of transmitting auditing program

information, real time information retrieval and activation and

disabling of slot machines.

(xx) Additional documentation as requested by the

Board.

(7) In the case of a modification to a slot machine

prototype, including a change in theme, the following additional

information shall be submitted:

(i) A complete, comprehensive and technically

accurate description of the proposed modification to the slot

machine prototype, accompanied by applicable diagrams,

schematics and specifications.

264

(ii) When a change in theme is involved, a copy

of all graphical images displayed on the slot machine including

reel strips, rules, instructions and paytables.

(iii) When a change in the manner in which the

theoretical payout percentage is achieved is involved, a

mathematical explanation of the theoretical return to the

player, listing all assumptions, all steps in the formula from

the first principles through to the final results of all

calculations including bonus pays and, where a game requires or

permits player skill in the theoretical derivations of the

payout return, the source of strategy.

(iv) A complete, comprehensive and technically

accurate description of the manner in which the slot machine was

tested for compatibility and compliance with the central control

computer and protocol specifications approved by the Department

including the ability to communicate with the central control

computer for the purpose of transmitting auditing program

information, real time information retrieval and activation and

disabling of slot machines.

(v) Additional documentation as requested by the

Board.

(8) In the case of a slot monitoring system, casino

management system, player tracking system, wide area progressive

system, gaming voucher system, external bonusing system,

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cashless funds transfer system, automated gaming voucher, coupon

redemption or jackpot payout machine, coupon system or any other

equipment or system required to be tested and approved under

subsection (b):

(i) A technical and an operator manual.

(ii) A description of all security methodologies

incorporated into the design of the system to include, when

applicable, password protection, encryption methodology and its

application, auto-authentication, network redundancy, back-up

and recovery procedures.

(iii) A complete schematic or network diagram of

the system’s major components accompanied by a description of

each component’s functionality and a software object report.

The description must disclose the functions performed by each

component.

(iv) A description of the data flow, in narrative

and in schematic form, including specifics with regard to data

cabling and, when appropriate, communications methodology for

multi-site applications.

(v) A list of all computer operating systems and

third party software incorporated into the system together with

a description of their interoperability.

(vi) System software and hardware installation

procedures.

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(vii) A list of all system reports available.

(viii) When applicable, features for each system

which may include patron and employee card functions,

promotions, reconciliation procedures and patron services.

(ix) A description of any interoperability

testing including test results for each submitted system's

connection to, as applicable, slot machines, voucher, coupon

redemption and jackpot payout machines, computerized systems for

counting money, vouchers and coupons. This list must identify

the tested products by manufacturer, model and software

identification and version number.

(x) A narrative describing the method used to

authenticate software.

(xi) When requested by the Board, all source

code.

(xii) When applicable, a complete, comprehensive

and accurate description, accompanied by applicable diagrams,

schematics and specifications, of the creation of a voucher and

the redemption options available.

(xiii) When applicable, a complete, comprehensive

and technically accurate description, accompanied by applicable

diagrams, schematics and specifications, of the creation of a

coupon and the redemption options available.

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(xiv) Any specialized hardware, software or other

equipment, inclusive of technical support and maintenance

applicable thereto, required by the Board’s Slot Lab to conduct

the testing and approval process contemplated by the act, this

subpart and technical standards adopted by the Board. The

testing equipment and services required by this paragraph shall

be provided at no cost to the Board.

(xv) Additional documentation requested by the

Board.

(9) In the case of a modification to any of the

systems identified in paragraph (8), the following additional

information shall be submitted:

(i) A complete, comprehensive and technically

accurate description of the proposed modification to the system,

accompanied by applicable diagrams, schematics and

specifications.

(ii) A brief narrative disclosing the purpose for

the modification.

(iii) Additional documentation as requested by

the Board.

(i) At the conclusion of any testing of a prototype or

modification by the Board's Slot Lab, but prior to a decision to

approve a prototype or modification, the Board may require a

trial period of scope and duration as it deems appropriate to

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assess the operation of the prototype or modification in a live

gaming environment. The conduct of the test period shall be

subject to compliance by the licensed manufacturer, any

applicable licensed supplier, and the slot machine licensee with

specific terms and conditions as may be required by the Board,

which may include development and implementation of product

specific accounting and internal controls, periodic data

reporting to the Board and compliance with technical standards

on trial periods or the prototype or modification adopted by the

Board. The Board may authorize the receipt of compensation by a

licensed manufacturer or licensed supplier during the trial

period. The Board may order termination of the trial period if

it determines that the licensed manufacturer, any applicable

licensed supplier or the slot machine licensee conducting the

trial period has not complied with the terms and conditions

required by the Board or that the product is not performing as

expected.

(j) At the conclusion of any testing of a prototype or

modification, the Board's Slot Lab will report to the Board the

results of its testing. Upon receipt of the Slot Lab's report,

the Board will approve, approve with conditions or reject the

submitted prototype or modification, require additional testing

or a trial period under subsection (i). Board approval of a

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prototype or modification does not constitute a guarantee of the

prototype or modification's safety.

(k) A slot machine licensee is prohibited from installing

in its licensed facility any slot machine or associated

equipment, or modification thereto, required to be tested and

approved under subsection (b) unless the equipment, device or

software has been approved by the Board. A slot machine

licensee may not modify, alter or tamper with any approved slot

machine or associated equipment. Any slot machine or associated

equipment installed in a licensed facility in contravention of

this requirement will be subject to seizure by the Board.

(l) Notwithstanding subsection (k), where a modification

to a slot machine prototype or associated equipment prototype is

required on an emergency basis to prevent cheating or

malfunction, upon the written request of a licensed manufacturer

in the manner prescribed by the Board, which request must

expressly detail the name and employer of any persons to be

involved in the installation of a modification and the manner in

which it is to be effected, the Board may, in writing, authorize

installation of a modification prior to the completion of the

testing and approval process required by this subpart. Within

15 days of receipt of any authorization to install an emergency

modification, the manufacturer shall submit the modification for

full testing and approval in accordance with this subpart.

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(m) A slot machine licensee shall immediately notify the

Board, in a manner and form the Board prescribes, of any known

or suspected defect or malfunction in any slot machine or

associated equipment installed in its licensed facility. The

slot machine licensee shall comply with any instructions issued

by the Board with regard to the continued operation of the slot

machine or associated equipment.

(n) If a dispute arises with a patron concerning payment

of alleged winnings, the slot machine licensee shall notify the

patron in writing, concurrent with its initial receipt of notice

of the dispute, that the patron has the right to contact the

Board with regard to the dispute.

(o) When a slot machine licensee refuses to pay winnings

claimed by a patron and the patron and the slot machine licensee

remain unable to resolve the dispute after 7 days, the slot

machine licensee shall, on the next day, notify the Board in

writing of the dispute in a manner and form the Board

prescribes. The notice must identify all parties to the dispute

and shall state all known relevant facts regarding the dispute.

(p) Concurrent with the initial receipt of slot machines,

an applicant for, or holder of, a slot machine license shall

file a slot machine master list as required by § 463.5 (relating

to slot machine master list).

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(q) The testing of equipment, devices or software under

this subpart may require the dismantling of the product and

testing that may result in damage to, or destruction of, one or

more systems or components. Once submitted for testing,

equipment, devices or software will not be returned to the

manufacturer unless otherwise determined by the Board.

§ 461.5. Slot machine conversions.

(a) Definition. The following term, when used in this

section, has the following meaning, unless the context clearly


Conversion - A change or alteration to a slot machine that

does not affect the manner or mode of play or operation of the

slot machine.

(b) Records of conversion. A slot machine licensee shall:

(1) Maintain complete and accurate records of all

conversions.

(2) Give prior notice of a slot machine conversion to

the Board's Slot Lab in writing in the manner prescribed by the

Board.

(3) Notice the Department in accordance with § 463.6

(relating to notice to central computer system).

§ 461.6. Revocations.

If subsequent to the approval of a slot machine prototype,

associated equipment prototype, or modification thereto, the

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Board determines that the equipment, device or software approved

by the Board meets either of the following criteria, the Board

may take action it deems appropriate, including revocation of

the approval or imposition of additional conditions:

(1) The equipment, device or software is not in compliance

with the act, this subpart or technical standards adopted by the

Board.

(2) With regard to any slot machine, or modification

thereto, the equipment, device or software is not compatible

with, or compliant with the central control computer and

protocol specifications approved by the Department or is unable

to communicate with the central control computer for the purpose

of transmitting auditing program information, real time

information retrieval and activation and disabling of slot

machines.

§ 461.7. Slot machine minimum design standards.

(a) A slot machine is any mechanical or electrical

contrivance, terminal, machine or other device as defined in

§ 401.4 (relating to definitions).

(b) A slot machine is prohibited from being set to pay out

less than the theoretical payout percentage, which shall be no

less than 85% but not equal or exceed 100%. The theoretical

payout percentage for the total value of slot machine wagers

will be calculated using the following criteria:

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(1) The defined set of all symbols that will be

displayed using spinning reels or video displays or both.

(2) The finite set of all possible combinations which

shall be known as the cycle of the game. All possible

combinations in a slot machine cycle shall be independent of

each other and of all possible combinations from cycles in other

slot machines.

(3) The value of each winning combination that

corresponds with the set from paragraph (2) which, whether by

reason of skill or application of the element of chance or both,

may deliver or entitle the person or persons playing the slot

machine to a jackpot.

(4) A payout of merchandise or anything of value

provided a cash equivalent award for the merchandise is offered.

The value of the cash equivalent will contribute to the

calculation of the theoretical payout percentage.

(5) A payout in the form of an annuity will

contribute to the calculation of the theoretical payout

percentage by dividing the initial or reset amount of the

jackpot payout by the number of years over which the jackpot

will be paid.

(6) The odds of any winning combination shall not

exceed 50 million to 1.

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(c) The calculation of the theoretical payout percentage

will not include:

(1) The amount of any progressive jackpot in excess

of the initial or reset amount.

(2) A cash or noncash complimentary issued under to §

465.8 (relating to complimentary services or items).

(3) A payout of merchandise or anything of value

where a cash equivalent award is not offered.

(d) A play offered by a slot machine may not have a

theoretical payout percentage which is less than, when

calculated to one hundredth of a percentage point, the

theoretical payout percentage for any other play offered by that

slot machine which is activated by a slot machine wager in a

lesser amount than the slot machine wager required for that

play. Notwithstanding the foregoing, the theoretical payout

percentage of one or more particular plays may be less than the

theoretical payout percentage of one or more plays which require

a lesser wager provided that:

(1) The aggregate total of the decreases in the

theoretical payout percentage for plays offered by the slot

machine is not more than 1/2 of 1%.

(2) The theoretical payout percentage for every play

offered by the slot machine is equal to or greater than the

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theoretical payout percentage for the play that requires the

lowest possible wager that will activate the slot machine.

(e) In addition to the requirements of subsections (b),

(c) and (d), the volatility of a slot machine must verify that

the theoretical payout percentage equals or exceeds the minimum

payout requirement of 85% within 10 million plays. The criteria

used to calculate the volatility must be in accordance with

technical standards applicable to volatility adopted by the

Board.

(f) The selection from the set of all possible

combinations of symbols shall be made applying a pseudo random

number generator. At a minimum, each pseudo random number

generator must adhere to the following criteria:

(1) The random selection process must meet a 95%

confidence interval.

(2) As determined by the Board, it must pass a

standard chi-squared test for goodness of fit.

(3) Each possible slot machine combination which

produces winning or losing slot machine outcomes must be

available for random selection at the initiation of each play.

(4) A slot machine payout percentage that may be

affected by reason of skill must meet the theoretical payout

requirements of this subpart when evaluated by the Board using a

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method of play that will provide the greatest return to the

player.

(5) Once a random selection process has occurred, the

slot machine must:

(i) Display an accurate representation of this

randomly selected outcome.

(ii) Not make a secondary decision which affects

the result shown to the person playing the slot machine.

(g) A slot machine is prohibited from automatically

altering any function of the slot machine based on internal

computation of the hold percentage.

(h) The available winning combinations and applicable

rules of play for a slot machine shall be available at all times

the slot machine is idle to the patron playing the slot machine.

The award schedule of available winning combinations may not

include possible aggregate awards achievable from free plays. A

slot machine that includes a strategy choice must provide

mathematically sufficient information for a patron to use

optimal skill. Information regarding a strategy choice need not

be made available for any strategy decisions whenever the patron

is not required, in addition to the initial wager, to make an

additional wager and, where as a result of playing a strategy

choice, the patron can not lose any credits earned thus far

during that game play.

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(i) Unless otherwise authorized by the Board, each slot

machine approved for use in a licensed facility must be equipped

with the following meters. The meters must comply with

technical standards adopted by the Board. The required meters

must continuously and automatically increment in units equal to

the denomination of the slot machine or, in the case of a slot

machine configured for multi-denomination play, must display the

required information in dollars and cents.

(1) Coin in. The slot machine must have a meter that

accumulates the total value of all wagers, whether the wager

results from the insertion of currency, gaming vouchers,

coupons, downloaded credits, credits won or any other means.

This meter must:

(i) Not include subsequent wagers of

intermediate winnings accumulated during game play sequence such

as those acquired from “double up” games.

(ii) For multi-game and multi-denomination/multi-

game slot machines, monitor the information necessary, on a per

pay table basis, to calculate a weighted average actual payout

percentage.

(2) Coin out. The slot machine must have a meter

that accumulates the total value of all amounts directly paid by

the slot machine as a result of winning wagers, whether the

payout is made directly from the printer by issuance of a gaming

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voucher, directly to a credit meter or by any other means. This

meter may not record amounts awarded as the result of an

external bonusing system or a progressive payout.

(3) Attendant paid jackpots. The slot machine must

have a meter that accumulates the total value of credits paid by

an attendant resulting from a single winning alignment or

combination, the amount of which is not capable of being paid by

the slot machine itself. This meter may not record amounts

awarded as the result of an external bonusing system or a

progressive payout. This meter is to record only amounts

specifically listed in the manufacturer’s par sheet.

(4) Attendant paid cancelled credits. The slot

machine must have a meter that accumulates the total value of

all amounts paid by an attendant resulting from a player

initiated cash-out that exceeds the physical or configured

capability of the slot machine.

(5) Bill in. The slot machine must have a meter that

accumulates the total value of currency accepted. The slot

machine must also have a specific meter for each denomination of

currency accepted that records the number of bills accepted for

each denomination.

(6) Voucher in – cashable/value. The slot machine

must have a meter that accumulates the total value of all

cashable gaming vouchers accepted by the slot machine.

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(7) Voucher in – cashable/count. The slot machine

must have a meter that accumulates the total number of cashable

gaming vouchers accepted by a slot machine.

(8) Voucher out – cashable/value. The slot machine


cashable gaming vouchers issued by the slot machine.

(9) Voucher out – cashable/count. The slot machine

must have a meter that records the total number of all cashable

gaming vouchers issued by a slot machine.

(10) Voucher out – noncashable/value. The slot


all noncashable gaming vouchers issued by the slot machine.

(11) Voucher out – noncashable/count. The slot

machine must have a meter that records the total number of all

noncashable gaming vouchers issued by the slot machine.

(12) Cashable electronic in. The slot machine must

have a meter that accumulates the total value of cashable

credits electronically transferred to the slot machine by means

of an external connection between the slot machine and a

cashless funds transfer system.

(13) Noncashable electronic in. The slot machine must

have a meter that accumulates the total value of noncashable

credits electronically transferred to the slot machine by means

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of an external connection between the slot machine and a

cashless funds transfer system.

(14) Coupon in – cashable/value. The slot machine


cashable coupons accepted by the slot machine.

(15) Coupon in – cashable/count. The slot machine

must have a meter that accumulates the total number of all

cashable coupons accepted by the slot machine.

(16) Coupon in – noncashable/value. The slot machine


noncashable coupons accepted by the slot machine.

(17) Coupon in – noncashable/count. The slot machine

must have a meter that accumulates the total number of

noncashable coupons accepted by the slot machine.

(18) Slot machine paid external bonus payout. The

slot machine must have a meter that accumulates the total value

of additional amounts awarded as a result of an external

bonusing system and paid by the slot machine.

(19) Attendant paid external bonus payout. The slot


additional amounts awarded as a result of an external bonusing

system and paid by a slot attendant.

(20) Slot machine paid progressive payout. The slot


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credits paid as a result of progressive awards paid directly by

the slot machine. This meter may not record awards paid as a

result of an external bonusing system.

(21) Attendant paid progressive payout. The slot


credits paid by a slot attendant as a result of progressive

awards that are not capable of being paid by the slot machine.

This meter must not include awards paid as a result of an

external bonusing system.

(22) Additional requirements. Other meters as may be

required by technical standards adopted by the Board.

(j) Unless otherwise authorized by the Board, each slot

machine approved for use in a licensed facility must be equipped

with the following noncumulative meters:

(1) Credits wagered. The slot machine must have a

meter, visible from the front exterior of a slot machine, known

as a credit wagered meter that advises the patron of the total

value of amounts wagered in a particular game or round of slot

play.

(2) Win meter. The slot machine must have a meter,

visible from the front exterior of the slot machine, known as a

win meter that advises the patron of the total value of amounts

won in the immediately concluded game or round of slot play.

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(3) Credits paid. The slot machine must have a

meter, visible from the front exterior of the slot machine,

known as a credits paid meter that advises the patron of the

total value of the last: cash out initiated by the patron, win

paid directly by the slot machine, attendant paid jackpot or

attendant paid cancelled credit.

(4) Credit meter. The slot machine must have a

meter, visible from the front exterior of the slot machine and

specifically labeled as a credit meter, which advises the patron

as to the number of credits or monetary value available for

wagering on the slot machine. The credit meter need not

distinguish between cashable credits and noncashable credits.

(k) Each slot machine must have a meter which stores the

number of games played, in the manner and for a duration

specified in this subpart or in technical standards adopted by

the Board, since the following events:

(1) Power reset.

(2) Door close.

(3) Game initialization (random access memory (RAM)

clear).

(l) Each slot machine must be equipped with a device,

mechanism or method for retaining the total value of all meters

required under subsection (i) for a period of 72 hours

subsequent to a power loss.

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(m) The required meters on each slot machine must be

accessible and legible without access to the interior of the

slot machine.

(n) Each slot machine must be equipped with a tower light

capable of effectively communicating the status of the slot

machine in accordance with technical standards on tower lights

and error conditions adopted by the Board.

(o) Each slot machine must be equipped with a device,

mechanism or method for detecting, displaying and communicating

to a slot monitoring system error conditions. The error

conditions detected, displayed and communicated by a slot

machine, and the method to be utilized to clear the message with

regard to the error condition, must be in accordance with

technical standards on tower lights and error conditions adopted

by the Board.

(p) Each slot machine must, in accordance with section

1324 of the act (relating to protocol information), comply with

the comprehensive protocol specifications necessary to enable

the slot machine to communicate with the Department’s central

control computer as that protocol is amended or supplemented,

for the purpose of transmitting auditing program information,

real time information retrieval and slot machine activation and

disabling.

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(q) A slot machine must lock up and preclude further play

whenever a jackpot occurs that is not able to be paid completely

by the slot machine and requires a hand pay. When the jackpot

occurs, the slot machine can offer a predetermined number of

double-up wagers before the slot machine locks up.

(r) A slot machine must be configured to not accept more

than $3,000 in currency before a wager must be made or play

initiated unless otherwise authorized by the Board.

(s) Printers incorporated into a slot machine must be:

(1) Designed to allow the slot machine to detect and

report a low paper level, paper out, presentation error, printer

failure and paper jams.

(2) Mounted inside a lockable compartment within the

slot machine.

(t) Seating made available by a slot machine licensee for

use during slot play must be fixed and stationary in nature.

Slot seating must be installed in a manner that effectively

precludes its ready removal by a patron but permits controlled

removal, for example for American With Disabilities Act of 1990

(ADA) purposes (42 U.S.C.A. §§ 12101—12213), by slot operations

department personnel.

(u) Unless a slot machine licensee's slot monitoring

system is configured to automatically record all of the

information required by this subsection, the slot machine

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licensee shall be required to physically house in each slot

machine the following entry authorization logs:

(1) A machine entry authorization log that documents

each time a slot machine or any device connected thereto which

may affect the operation of the slot machine is opened. The log

must contain, at a minimum, the date, time, purpose for opening

the slot machine or device and the signature and license number

of the person opening and entering the slot machine or device.

Each log must have recorded thereon a sequence number and the

manufacturer's serial number or the asset number corresponding

to the slot machine in which it is housed.

(2) A progressive entry authorization log that

documents each time a progressive controller not housed within

the cabinet of the slot machine is opened. The log must contain,

at a minimum, the date, time, purpose for accessing the

progressive controller and the signature and license number of

the person accessing the progressive controller. Each log must

be maintained in the progressive controller unit and have

recorded thereon a sequence number and the manufacturer's serial

number of the progressive controller.

(v) Each slot machine must be equipped with a lock

controlling access to the card cage door securing its

microprocessor, the key to which must be different from any

other key securing access to the slot machine's components

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including its belly door or main door, bill validator or slot

cash storage box. Access to the key securing the microprocessor

shall be limited to a supervisor in the slot operations

department, which department shall establish a sign out and sign

in procedure with regard to this key.

(w) Each slot machine must be equipped with a mechanism

for detecting and communicating to a slot monitoring system any

activity with regard to access to the card cage door securing

its microprocessor.

(x) The Board may waive one or more of the slot machine

minimum design standards in this section or technical standards

adopted by the Board applicable to slot machine design, upon a

determination that a slot machine prototype or modification as

configured nonetheless meets the operational integrity standards

of the act, this subpart and technical standards adopted by the

Board.

§ 461.8. Gaming vouchers. (a) A gaming voucher is an instrument that upon insertion

into a slot machine bill validator entitles the patron inserting

the gaming voucher to cashable or noncashable credits on a slot

machine corresponding to the value printed on the gaming

voucher. The design specifications for a gaming voucher, the

expiration terms applicable thereto, the voucher verification

methodologies utilized, and any limitation on the value of a

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gaming voucher must be in compliance with technical standards on

gaming vouchers adopted by the Board.

(b) A slot machine licensee may utilize a gaming voucher

system. A gaming voucher system is the collective hardware,

software, communications technology, and other ancillary

equipment used to facilitate the issuance of gaming vouchers and

the redemption of gaming vouchers by slot machines, automated

gaming voucher redemption machines, the cashiers’ cage or in

other locations, and in alternative manners, as approved by the

Board. A gaming voucher system must comply with technical

standards on gaming voucher systems adopted by the Board.

(c) A slot machine licensee is prohibited from utilizing a

gaming voucher system which has not been tested and approved by

the Board under § 461.4 (relating to submission for testing and

approval).

(d) Except as provided in subsection (n) with regard to

employee redemption of gaming vouchers, each gaming voucher

shall be redeemed by a patron for a specific value of cash, slot

machine credits, or, at the request of the patron, a check

issued by the slot machine licensee in the amount of the gaming

voucher surrendered. Notwithstanding the forgoing, a slot

machine licensee may not permit a gaming voucher that is

presented for redemption to be redeemed if it knows, or has

reason to know, that the gaming voucher:

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(1) Is materially different from the sample of the

gaming voucher approved by the Board.

(2) Was previously redeemed.

(3) Was printed as a test gaming voucher.

(e) Prior to issuing a gaming voucher, each slot machine

licensee shall establish a system of internal controls for the

issuance and redemption of gaming vouchers. The internal

controls shall be submitted and approved by the Board under §

465.3 (relating to internal control systems and audit protocols)

and address:

(1) Procedures for assigning a slot machine's asset

number and identifying other redemption locations in the system,

and enabling and disabling voucher capabilities for slot

machines and redemption locations.

(2) Procedures for issuance, modification, and

termination of a unique system account for each user in

accordance with technical standards adopted by the Board.

(3) Procedures used to configure and maintain user

passwords in accordance with technical standards adopted by the

Board.

(4) Procedures for restricting special rights and

privileges, such as administrator and override capabilities, in

accordance with technical standards adopted by the Board.

(5) The duties and responsibilities of the

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information technology, internal audit, slot operations and

finance departments, respectively, and the level of access for

each position with regard to the gaming voucher system.

(6) A description of physical controls on all

critical hardware such as locks and surveillance, including the

location and security protocols applicable to each piece of

equipment as approved by the Board.

(7) Procedures for the backup and timely recovery of

critical data in accordance with technical standards adopted by

the Board.

(8) Logs used to document and maintain the details of

any Board-approved hardware and software modifications upon

implementation.

(f) The system of internal controls required to be

submitted and approved by the Board under subsection (e) must

also include the procedures to be applied in the following

instances:

(1) The slot machine licensee chooses to pay a patron

the value of a gaming voucher notwithstanding the fact that its

gaming voucher system is inoperable rendering it unable to

determine the validity of the gaming voucher at the time of

payment.

(2) The slot machine licensee chooses to pay a patron

the value of a gaming voucher notwithstanding the fact that the

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gaming voucher system failed to verify and electronically cancel

the gaming voucher when it was scanned.

(g) At the end of each gaming day, the gaming voucher

system must generate reports, as approved by the Board, which

reports are provided to the finance department, either directly

by the system or through the information technology department,

and contain the following information, at a minimum:

(1) All gaming vouchers that have been issued.

Reports with regard to slot machine activity must include the

asset number of the slot machine and the serial number, value,

date and time of issuance of each gaming voucher.

(2) All gaming vouchers that have been redeemed and

canceled by redemption location, including the asset number of

the slot machine or location if other than a slot machine, the

serial number, value, date and time of redemption for each

voucher, the total value of all gaming vouchers redeemed at slot

machines, and the total value of all gaming vouchers redeemed at

locations other than slot machines.

(3) The unredeemed liability for gaming vouchers.

(4) The readings on gaming voucher related slot

machine meters and a comparison of the readings to the number

and value of issued and redeemed gaming vouchers, as applicable.

(5) Exception reports and audit logs.

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(h) The slot machine licensee shall immediately report to

the Board, in a manner prescribed by the Board, any evidence

that a gaming voucher has been counterfeited, tampered with, or

altered in any way which would affect the integrity, fairness,

reliability or suitability of the gaming voucher.

(i) Upon presentation of a gaming voucher for redemption

at a slot machine, the total value of which gaming voucher

cannot be completely converted into an equivalent value of

credits that match the denomination of the slot machine, the

slot machine must perform one of the following procedures:

(1) Automatically issue a new gaming voucher

containing the value that cannot be completely converted.

(2) Not redeem the gaming voucher and immediately

return the gaming voucher to the patron.

(3) Allow for the additional accumulation of credits

on an odd cents meter or a meter that displays the value in

dollars and cents.

(j) A slot machine licensee that utilizes a system or a

slot machine that does not print a test gaming voucher that is

visually distinguishable from a valid gaming voucher whenever

the slot machine is tested on the gaming floor must have in

place internal controls approved by the Board under § 465.3 for

the issuance of test currency from the cashiers' cage and the

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return and reconciliation of such test currency and any gaming

vouchers printed during the testing process.

(k) Notwithstanding the requirements of subsection (d), if

a patron requests to redeem a gaming voucher by mail, the slot

machine licensee may effectuate the redemption. However, the

gaming vouchers may only be redeemed by a cage supervisor in

accordance with internal controls approved by the Board under §

465.3, which includes the following:

(1) Procedures for using the gaming voucher system to

verify the validity of the serial number and value of the

voucher, which, if valid, must be immediately canceled

electronically by the system.

(2) Procedures for the issuance of a check containing

the value of the voucher.

(l) Gaming vouchers redeemed at cashiering locations shall

be transferred to the finance department on a daily basis.

Gaming vouchers redeemed by slot machines shall be counted in

the count room and forwarded to the finance department upon the

conclusion of the count process. Gaming vouchers redeemed at

automated gaming voucher redemption machines shall be forwarded

to finance upon the conclusion of the cashiers’ cage

reconciliation process. Finance department representatives with

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no incompatible functions shall perform, at a minimum, the

following:

(1) On a daily basis:

(i) Compare gaming voucher system report data to

any count room system report data available for that gaming day

to ensure proper electronic cancellation of the gaming voucher.

(ii) Calculate the unredeemed liability for

gaming vouchers, either manually or by means of the gaming

voucher system.

(2) On a weekly basis, compare appropriate slot

machine meter readings to the number and value of issued and

redeemed gaming vouchers per the gaming voucher system. Meter

readings obtained through a slot monitoring system may be

utilized to complete this comparison.

(m) A slot machine licensee shall provide written notice

to the Board’s Slot Lab of any adjustment to the value of any

gaming voucher. The notice shall be made prior to, or

concurrent with, the adjustment.

(n) Employees of a slot machine licensee who are

authorized to receive gaming vouchers as gratuities may redeem

the gaming vouchers only at the cashiers' cage. Gaming vouchers

valued at more than $100 shall be redeemed at the cashiers' cage

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only with the approval of the supervisor of the cashier

conducting the redemption transaction.

(o) Each gaming voucher system must be configured to alert

the slot machine licensee to any malfunction. Following any

malfunction of a system, the slot machine licensee shall

immediately notify the Board and may not utilize the system

until the malfunction has been successfully eliminated.

Notwithstanding the foregoing, the Board may permit, in

accordance with approval procedures the Board prescribes, a slot

machine licensee to utilize the system prior to its being

successfully restored, for a period not to exceed 72 hours,

provided that:

(1) The malfunction is limited to a single storage

media device, such as a hard disk drive.

(2) In addition to the malfunctioning storage media

device, the system contains a backup storage media device not

utilized in the normal operation of the system. The backup

device must immediately and automatically replace the

malfunctioning device to permit a complete and prompt recovery

of all information in the event of an additional malfunction.

(3) Continued use of the malfunctioning system would

not inhibit the ability to perform a complete and prompt

recovery of all information, and would not otherwise harm or

affect the normal operation of the system.

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(p) Other than a modification to a gaming voucher system

required on an emergency basis to prevent cheating or

malfunction and approved by the Board under § 461.4(l), a

modification to a gaming voucher system may not be installed

without the gaming voucher system having undergone the testing

and approval process required under § 461.4.

(q) The Board may waive one or more requirements of this

section or technical standards applicable to gaming voucher

systems adopted by the Board upon a determination that the

nonconforming gaming voucher system nonetheless meets the

operational integrity requirements of the act, this subpart and

technical standards adopted by the Board.

§ 461.9. Coupons. (a) A coupon is an instrument issued by a slot machine

licensee under which cashable or noncashable slot machine

credits are provided directly or indirectly to a patron with or

without regard to the identity of the patron or their level of

gaming activity.

(b) A slot machine licensee may issue coupons. A coupon

system is the collective hardware, software, communications

technology and other ancillary equipment used to facilitate the

issuance of coupons, the acceptance of a coupon by a slot


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machine or its redemption at an automated coupon redemption

machine, cashiers' cage or such other locations, and in an

alternative manner approved by the Board. A coupon system must

comply with technical standards on coupon systems adopted by the

Board.


coupon system which has not been tested and approved by the

Board under § 461.4 (relating to submission for testing and

approval).

(d) Each coupon shall be designed and manufactured with

sufficient graphics or other security measures, so as to permit,

to the greatest extent possible, the proper verification of the

coupon. Each coupon must contain, at a minimum, the following

information:

(1) The name or trade name of the slot machine

licensee, and if the slot machine licensee is affiliated with a

casino licensee in any other jurisdiction with an identical or

similar name or trade name, the name of the Pennsylvania

location must be evident on the coupon.

(2) The value of the coupon, in both numbers and

words.

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(3) A unique serial number, which is automatically

generated by the system in accordance with this subpart and


(4) The locations where the coupon may be redeemed

and any restrictions regarding redemption.

(5) An indication of the date on which the coupon

becomes invalid.

(6) A bar code or magnetic strip which enables the

system to establish the validity of the coupon and its value in

accordance with this subpart and technical standards adopted by

the Board.

(e) Prior to issuing a coupon, each slot machine licensee

shall establish a system of internal controls for the issuance

and redemption of coupons. The internal controls shall be

submitted to, and approved by the Board under § 465.3 (relating

to internal control systems and audit protocols).

(f) The Board may waive one or more requirements of this

section or technical standards applicable to coupon systems

adopted by the Board upon a determination that the nonconforming

coupon system nonetheless meets the operational integrity

requirements of the act, this subpart and technical standards


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§ 461.10. Automated gaming voucher and coupon redemption

machines.

(a) Automated gaming voucher and coupon redemption

machines may be located on or proximate to the gaming floor of a

licensed facility and must be subject to surveillance coverage

pursuant to § 465.10 (relating to surveillance system;

surveillance department control; surveillance department

restrictions). Each automated gaming voucher and coupon

redemption machine must have imprinted, affixed or impressed on

the outside of the machine a unique asset identification number.

(b) A slot machine licensee is prohibited from utilizing

an automated gaming voucher and coupon redemption machine that

has not been tested and approved by the Board under § 461.4

(relating to submission for testing and approval).

(c) Each automated gaming voucher and coupon redemption

machine must have the capability of establishing the validity of

the gaming voucher or coupon by comparing the instrument's

unique serial number, automatically generated by the respective

gaming voucher or coupon system in accordance with this subpart

and technical standards adopted by the Board with electronic

records within the gaming voucher system or coupon system.

(d) The method or methods utilized to comply with the

requirements of subsection (c) shall be submitted to and

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approved by the Board in the context of the testing of a gaming

voucher system or coupon system.

(e) An automated gaming voucher and coupon redemption

machine may function as a bill breaker changing bills of one

denomination into bills of a smaller denomination.

(f) Each automated gaming voucher and coupon redemption

machine must contain a lockable gaming voucher, coupon and

currency storage box which retains any gaming vouchers, coupons

or currency accepted by the machine. Each gaming voucher,

coupon and currency storage box located inside the machine must

also have imprinted, affixed or impressed thereon the asset

identification number of the corresponding machine.

(g) Each automated gaming voucher and coupon redemption

machine must have, at a minimum, the following:

(1) One lock securing the compartment housing the

storage box, one lock securing the storage box within the

compartment, the keys to which must be different from each

another. The key to the compartment housing the storage box

shall be controlled by the slot operations department. The key

to the lock securing the storage box within the compartment

shall be controlled by the finance department.

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currency cassettes, the key to which shall be controlled by the

finance department.


coin storage container, the key to which shall be controlled by

the finance department.

(4) One lock securing the contents of the storage

box, the key to which must be different from the keys referenced

in paragraphs (1) -- (3). This key shall be controlled by an

employee of the finance department other than the employee

controlling the keys referenced in paragraphs (1) -- (3).

(h) Each automated gaming voucher and coupon redemption

machine must be designed to resist forced illegal entry. The

slot machine licensee must secure all input/output ports on an

automated gaming voucher and coupon redemption machine.

(i) Each automated gaming voucher and coupon redemption

machine’s currency cassettes must be designed to preclude access

to its interior and must render itself inoperable should

unauthorized access occur. The key to each currency cassette

shall be controlled by the finance department.

(j) Access controls relating to the operating system or

applications of the automated gaming voucher and coupon

redemption machine, and ancillary systems, applications and

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equipment associated with the reconciliation thereof, must

employ security measures that require authentication of the user

and recording and maintaining of data regarding access and any

modifications made. Authentication must be in accordance with

this subpart and technical standards adopted by the Board.

(k) A gaming voucher or coupon accepted by an automated

gaming voucher and coupon redemption machine shall be cancelled

immediately upon exchange in a manner that effectively prevents

its subsequent redemption by the cashiers' cage, another

automated gaming voucher and coupon redemption machine or its

acceptance in a slot machine bill validator. The method or

methods utilized to comply with this requirement shall be in


the Board.

(l) An automated gaming voucher and coupon redemption

machine must be designed to be impervious to outside influences,

interference from electro-magnetic, electro-static and radio

frequencies and influence from ancillary equipment.

(m) An automated gaming voucher and coupon redemption

machine must include a means to protect against transaction

failure and data loss due to power loss.

(n) An automated gaming voucher and coupon redemption

machine must detect, display and record electronically the

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following error conditions: power reset; door open; door just

closed; and system communication loss. These error conditions

may be automatically cleared by the automated gaming voucher and

coupon redemption machine when the condition no longer exists

and upon completion of a new transaction.

(o) An automated gaming voucher and coupon redemption

machine must detect, display and record electronically the

following error conditions in paragraphs (1) – (4). These error

conditions must disable the automated gaming voucher and coupon

redemption machine and prohibit new transactions and may only be

cleared by either the finance department or slot operations

department.

(1) Failure to make payment, if the gaming voucher or

coupon is not returned and no receipt is issued.

(2) Failure to make complete payment if a receipt for

the unpaid amount is not issued.

(3) Bill validator failure.

(4) Printer failure due to printer jam or lack of

paper.

(p) An automated gaming voucher and coupon redemption

machine must be designed to evaluate whether sufficient funds

are available before stacking the voucher and completing the

transaction.

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(q) An automated gaming voucher and coupon redemption

machine must be capable of maintaining synchronization between

its real time clock and that of the gaming voucher system and

coupon system.

(r) An automated gaming voucher and coupon redemption

machine must be equipped with electronic digital storage meters

which accumulate the following information. The information

must be readily available through system reports. Where a value

is maintained, the value must be in dollars and cents.

(1) Physical coin out. An automated gaming voucher

and coupon redemption machine must have a meter that accumulates

the total value, by denomination, of all coins paid by the

automated gaming voucher and coupon redemption machine.

(2) Voucher in - value. An automated gaming voucher

machine must have a meter that accumulates the value of all

cashable gaming vouchers accepted.

(3) Voucher in - count. An automated gaming voucher

machine must have a meter that accumulates the number of all

cashable gaming vouchers accepted.

(4) Coupon in - value. An automated coupon

redemption machine must have a meter that accumulates the value

of all cashable coupons accepted.

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(5) Coupon in - count. An automated coupon

redemption machine must have a meter that accumulates the number

of all cashable coupons accepted.

(6) Bill in. An automated gaming voucher and coupon

redemption machine must have a meter that accumulates the value

of all currency accepted by the automated gaming voucher and

coupon redemption machine. Each automated gaming voucher and

coupon redemption machine must also have specific meters for

each denomination of currency accepted that records the number

of bills accepted.

(7) Bill out. An automated gaming voucher and coupon

redemption machine must have a meter that accumulates the total

value of currency dispensed. Each automated gaming voucher and

coupon redemption machine must also provide for specific meters

for each denomination of currency dispensed that record the

number of bills dispensed.

(8) Additional requirement. Other meters as may be

required by technical standards adopted by the Board.

(s) An automated gaming voucher and coupon redemption

machine must have the capacity to record and retain, in an

automated transaction log, all critical transaction history for

a period of no less than 30 days. Transaction history must

include records with regard to the date, time, amount and

disposition of each complete and incomplete transaction, error

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conditions, logical and physical access and attempted access to

the automated gaming voucher and coupon redemption machine. If

an automated gaming voucher and coupon redemption machine is

capable of redeeming multiple vouchers and coupons in a single

transaction, the transaction history must include a breakdown of

the transaction with regard to gaming vouchers and coupons.

(t) An automated gaming voucher and coupon redemption

machine or ancillary systems, applications and equipment

associated with the reconciliation thereof, must be capable of

producing the following reports upon request:

(1) Gaming voucher transaction report. This report

must include the disposition (paid, partial pay, unpaid) of

gaming vouchers accepted by an automated gaming voucher and

coupon redemption machine which must include the validation

number, the date and time of redemption, amount requested and

the amount dispensed. This information must be available by

reconciliation period which may be by day, shift or drop cycle.

(2) Coupon transaction report. This report must

include the disposition (paid, partial pay, unpaid) of coupons

accepted by an automated gaming voucher and coupon redemption

machine which must include the unique serial number, the date

and time of redemption, amount requested and the amount

dispensed. This information must be available by reconciliation

period which may be by day, shift or drop cycle.

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(3) Reconciliation report. This report must include

the following information:

(i) Report date and time.

(ii) Unique asset identification number of the

machine.

(iii)Total cash balance of the currency

cassettes.

(iv) Total count of currency accepted by

denomination.

(v) Total dollar amount of vouchers accepted.

(vi) Total count of gaming vouchers accepted

(vii) Total dollar amount of coupons accepted.

(viii) Total count of coupons accepted.

(4) Gaming voucher, coupon and currency storage box

report. This report must be generated, at a minimum, whenever a

gaming voucher, coupon and currency storage box is removed from

an automated gaming voucher and coupon redemption machine. The

report must include the following information:

(i) Report date and time.

(ii) Unique asset identification number of the

machine.

(iii) Unique identification number for each

storage box in the machine.

(iv) Total value of currency dispensed.

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(v) Total number of bills dispensed by

denomination.

(vi) Total dollar value of gaming vouchers

accepted.

(vii) Total count of gaming vouchers accepted.

(viii) Total dollar value of coupons accepted.

(ix) Total count of coupons accepted.

(x) Details required to be included in the

gaming voucher transaction report required by paragraph (1) and

the coupon transaction report required in paragraph (2).

(5) Transaction report. This report must include all

critical patron transaction history including the date, time,

amount and disposition of each complete and incomplete

transaction. If an automated gaming voucher and coupon

redemption machine is capable of redeeming multiple vouchers or

coupons in a single transaction, the transaction history must

include a breakdown of the transaction with regard to gaming

vouchers and coupons accepted.

(u) The Board may waive one or more requirements of this

section or technical standards applicable to automated gaming

voucher and coupon redemption machines adopted by the Board upon

a determination that the machine as configured nonetheless meets

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the operational integrity requirements of the act, this subpart

and technical standards adopted by the Board.

§ 461.11. Automated gaming voucher and coupon redemption

machines: accounting controls.

Prior to commencing use of either an automated gaming

voucher redemption machine, an automated coupon redemption

machine, bill breaker or some combination thereof, each slot

machine licensee shall establish a comprehensive system of

internal controls addressing the distribution of currency or

coin, or both, to the machines, the removal of any gaming

vouchers, coupons or currency accepted by the machines and the

reconciliations associated therewith. The internal controls

shall be submitted to, and approved by the Board under § 465.3

(relating to internal control systems and audit protocols).

§ 461.12. Progressive slot machines. (a) A progressive slot machine is a slot machine that

offers a jackpot that may increase in value based upon wagers as

the slot machine is played. A progressive slot machine may

stand alone, be linked or interconnected with other progressive

slot machines. Progressive slot machines located at a licensed

facility that are linked or interconnected with progressive slot


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machines at another licensed facility are collectively referred

to as a wide area progressive system.

(b) Each slot machine that offers a progressive jackpot

which may increase in value based upon wager and is adjusted and

displayed by a device other than the approved program that

controls the operation of the slot machine, referred to herein

as a progressive controller, must have the following features:

(1) For each progressive jackpot offered by the slot

machine, a mechanical, electrical or electronic device, to be

known as a progressive meter, visible from the front of the slot

machine, which may increase in value based upon wagers, and

which advises the player of the amount which can be won if the

slot machine symbols that award the progressive jackpot appear

as a result of activation of play of the slot machine.

(2) A slot machine paid progressive payout meter in

accordance with § 461.7(i) (relating to slot machine minimum

design standards).

(3) A slot attendant paid progressive payout meter in

accordance with § 461.7(i).

(4) A cumulative progressive payout meter that

continuously and automatically records the total value of

progressive jackpots paid directly by the slot machine or by a

slot attendant.

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(5) A key and key switch to reset the progressive

meter or meters or such other reset mechanism as may be approved

by the Board.

(6) A key locking the compartment housing the

progressive meter or meters or other means by which to preclude

any unauthorized alterations to the progressive meters. This

key or alternative security method must be different than the

key or reset mechanism in paragraph (5).

(7) Dual key control by the security department and

finance department, or alternative key controls as the Board

approves, of the compartment housing the microprocessor or other

unit that controls the progressive meter or meters. The

compartment shall be in a location approved by the Board.

(c) Each slot machine that is connected to a common

progressive meter for the purpose of offering the same

progressive jackpot on two or more slot machines must:

(1) Have the same probability of hitting the

combination that will award the progressive jackpot as every

other linked slot machine connected to the common progressive

meter.

(2) Require that the same amount in wager be invested

to entitle the player to a chance at winning the progressive

jackpot and that each increase in wager increment the

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progressive meter by the same rate of progression as every other

linked slot machine connected to such common progressive meter.

(3) Have its program or progressive controller that

controls the common display for the progressive meter housed in

a location and subject to such dual key controls as may be

approved by the Board.

(d) Notwithstanding the provision of subsection (c):

(1) Two or more linked slot machines offering the

same progressive jackpot may be of different denominations or

have different wagers, or both, required to win the progressive

jackpot, provided that:

(i) The probability of winning the progressive

jackpot is directly proportional to the wager required to win

that jackpot.

(ii) A notice approved by the Board indicating

the proportional probability of hitting the progressive jackpot

on such a linked progressive system is conspicuously displayed

on each linked slot machine.

(2) The probability of winning a progressive jackpot

offered on linked slot machines may vary among such machines

when necessary to enable a slot machine licensee or, as

applicable, a slot system operator, to institute a change in the

probability which is otherwise permitted by this subpart, if the

312

change is completed expeditiously in accordance with procedures

that have been filed with and approved by the Board.

(e) A slot machine licensee seeking to utilize a linked

slot machine shall submit to the Board for approval the location

and manner of installing any progressive meter display

mechanism.

(f) A slot machine that offers a progressive jackpot may

not be placed on the gaming floor until the slot machine

licensee or, as applicable, the slot system operator, has

submitted to the Board, in a manner the Board directs, and the

Board has approved, the following:

(1) The initial and reset amounts at which the

progressive meter or meters will be set.

(2) The proposed system for controlling the keys and

any applicable logical access controls to the slot machines.

(3) The proposed rate of progression for each

progressive jackpot.

(4) The proposed limit for the progressive jackpot,

if any.

(5) The calculated probability of winning each

progressive jackpot. The probability may not exceed 50 million

to 1. Notwithstanding the foregoing, this paragraph does not

313

apply to a jackpot with a probability that may exceed 50 million

to 1 during the game cycle due solely to the intervening

occurrence of free play awards between the activation of a play

and the award of the jackpot.

(g) Progressive meters may not be turned back to a lesser

amount unless one of the following occurs:

(1) The amount indicated has been actually paid to a

winning patron.

(2) The progressive jackpot amount won by the patron

has been recorded in accordance with a system of internal

controls approved under § 465.3 (relating to internal control

systems and audit protocols).

(3) The progressive jackpot has, with prior Board

approval, been transferred to another progressive slot machine

or wide area progressive system in accordance with this subpart.

(4) The change is necessitated by a slot machine or

meter malfunction, in which case:

(i) For progressive jackpots governed by

subsection (b), an explanation shall be entered on the

progressive slot summary required by this subpart and the Board

shall be notified of the resetting in writing in a manner the

Board directs.

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(ii) For progressive jackpots governed by

subsection (m), an explanation shall be entered on the machine

entry authorization log required under this subpart unless the

slot machine automatically addresses the malfunction in a manner


(h) Once an amount appears on a progressive meter, the

probability of hitting the combination that will award the

progressive jackpot may not be decreased unless the progressive

jackpot has been won by a patron or the progressive jackpot has

been transferred to another progressive slot machine or wide

area progressive system or removed in accordance with subsection

(j).

(i) When a progressive slot machine has a progressive

meter with digital limitations on the meter, the slot machine

licensee shall set a limit on the progressive jackpot not to

exceed the display capability of the progressive meter.

(j) A slot machine licensee or, as applicable, a slot

system operator, may limit, transfer or terminate a progressive

jackpot offered on a gaming floor only in accordance with the

following procedures:

(1) Establish a payout limit for a progressive

jackpot provided that the payout limit is greater than the then

current payout amount on the progressive jackpot meter. The

315

slot machine licensee shall notice the Board, in a manner the

Board directs, of the imposition of a payout limit on a

progressive meter or a modification thereto concurrent with the

setting of the payout limit.

(2) May terminate a progressive jackpot concurrent

with the winning of the progressive jackpot provided its slot

machine program or progressive controller was configured prior

to the winning of the progressive jackpot to establish a fixed

reset amount with no progressive increment.

(3) May immediately and permanently remove one or

more linked slot machines from a gaming floor, provided that:

(i) When the slot machine is part of a wide area

progressive system offered at multiple licensed facilities, the

slot machine licensee shall retain at least one linked slot

machine offering the same progressive jackpot on its gaming

floor.

(ii) When the progressive jackpot is only offered

in a single licensed facility, at least two linked slot machines

offering the same progressive jackpot must remain on the gaming

floor.

(4) May transfer a progressive jackpot amount on a

stand alone progressive slot machine or the common progressive

jackpot on an entire link of progressive slot machines with a

316

common progressive meter, including a wide area progressive

system, from a gaming floor provided the progressive jackpot is:

(i) Transferred in its entirety.

(ii) Transferred to either of the following:

(A) The progressive meter for a progressive

slot machine or wide area progressive system with the same or

greater probability of winning the progressive jackpot, the same

or lower wager requirement to be eligible to win the progressive

jackpot, and the same type of progressive jackpot (cash,

annuity, annuity/cash option or a combination/alternate

jackpot). However, if no other progressive slot machine or wide

area progressive system meets all of these qualifications, the

Board may authorize a transfer of the jackpot to the progressive

meter of the most similar progressive slot machine or wide area

progressive system available if the Board finds such a transfer

would be in the public interest.

(B) The progressive meters of two separate

progressive slot machines or wide area progressive systems,

provided that each progressive slot machine or wide area

progressive system to which the jackpot is transferred shall

individually satisfy the requirements of clause (A).

317

(iii) Notice of intent to transfer the

progressive jackpot is conspicuously displayed on the front of

each slot machine for at least 30 days.

(iv) Notice of intent to transfer the progressive

jackpot is provided in writing to the Board, in a manner the

Board directs, at least 30 days prior to the transfer of the

progressive jackpot.

(5) May immediately and permanently remove a

progressive jackpot on a stand alone progressive slot machine,

the common progressive jackpot on an entire link of progressive

slot machines with a common progressive meter or an entire wide

area progressive system from a gaming floor provided notice of

intent to remove the progressive jackpot is:

(i) Conspicuously displayed on the front of each

slot machine for at least 30 days.

(ii) Provided in writing to the Board, in a

manner the Board directs, at least 30 days prior to the removal

of the progressive jackpot.

(k) The amount indicated on the progressive meter or

meters and coin in meter on each slot machine governed by

subsection (b) shall be recorded on a progressive slot summary

report at least once every 7 calendar days and each report shall

be signed by the preparer. If not prepared by the finance

318

department, the progressive slot summary report shall be

forwarded to the finance department by the end of the gaming day

on which it is prepared. A representative of the finance

department shall be responsible for calculating the correct

amount that should appear on a progressive meter. If an

adjustment to the progressive meters is necessary, the

adjustment shall be made by a member of the slot operations

department as follows:

(1) Supporting documentation shall be maintained to

explain any addition or reduction in the registered amount on

the progressive meter. The documentation must include the date,

asset number of the slot machine, the amount of the adjustment

and the signatures of the finance department member requesting

the adjustment and of the slot operations department member

making the adjustment.

(2) The adjustment shall be effectuated within 48

hours of the meter reading.

(l) Except as otherwise authorized by this section, a slot

machine offering a progressive jackpot that is removed from the

gaming floor shall be returned to or replaced on the gaming

floor within 5 gaming days. The amount on the progressive meter

or meters on the returned or replacement machine may not be less

than the amount on the progressive meter or meters at the time

319

of removal. If the slot machine is not returned or replaced,

any progressive meter amount at the time of removal shall,

within 5 days of the slot machine's removal, be added to a slot

machine approved by the Board which slot machine offers the same

or a greater probability of winning the progressive jackpot and

requires the same wager or less than the wager required to win

the progressive jackpot on the slot machine that was removed.

This subsection does not apply to the temporary removal by a

slot machine licensee, for a period not to exceed 30 days, of

all linked slot machines that are part of a particular wide area

progressive system, provided that the progressive jackpot

offered by the temporarily removed slot machines remain

available on slot machines that are part of the same wide area

progressive system in another licensed facility.

(m) A slot machine that offers a progressive jackpot

controlled by a slot machine program with a fixed initial and

reset amount, rate of progression and progressive jackpot limit

which cannot be changed by the slot machine licensee must

limit the progressive jackpot to an amount which is less than

$1,200.

(n) A progressive jackpot governed by subsection (m) is

not subject to subsections (j)(4), (k) or (l).

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(o) Where a slot machine is located adjacent to any linked

progressive slot machine, the slot machine licensee shall

conspicuously display on the slot machine a notice advising

patrons that the slot machine is not participating in the

progressive jackpot of the adjacent link.

(p) The Board may waive one or more of the requirements of

this section or technical standards applicable to progressive

slot machines adopted by the Board upon a determination that the

progressive slot machine or wide area progressive slot system as

configured meets the operational integrity requirements of the


§ 461.13. Wide area progressive systems.

(a) Two or more slot machine licensees may, with the prior

written approval of the Board, operate linked progressive slot

machines that are interconnected between participating licensed

facilities. The slot machines participating in the link shall

be collectively referred to as a wide area progressive system.

(b) A wide area progressive system shall at all times be

installed and operated in accordance with relevant requirements

of the act, this subpart and technical standards adopted by the

Board.


321

(c) Each wide area progressive system shall be operated

and administered by participating slot machine licensees in

accordance with the terms and conditions of a written agreement

executed by the participating slot machine licensees and

approved by the Board. The agreement shall be referred to as a

slot system agreement. Slot system agreements must be approved

in writing by the Board prior to implementation and comply with

the act, this subpart and technical standards on wide area

progressive systems adopted by the Board.

(d) Nothing herein prevents the slot machine licensees

participating in a slot system agreement from delegating, in

whole or in part, the operation and administration of a wide

area progressive system to a licensed manufacturer provided that

the slot system agreement is executed by the licensed

manufacturer and its express terms are determined by the Board

to be in compliance with the act, this subpart and technical

standards on wide area progressive systems adopted by the Board.

The person or persons designated in a slot system agreement as

being responsible for the operation and administration of a wide

area progressive system shall be referred to as the slot system

operator.

(e) An agreement between a licensed manufacturer and a

slot machine licensee under which a licensed manufacturer sells,

leases or services a wide area progressive system will not

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constitute a slot service agreement unless the agreement also

covers operation and administration of the wide area progressive

system.

(f) Slot system agreements must address:

(1) Details with regard to the terms of compensation

for the slot system operator. In specific, the agreement must

address to what extent, if any, the slot system operator is

receiving compensation based, directly or indirectly, on an

interest, percentage or share of a slot machine licensee’s

revenue, profits or earnings from the operation of the wide area

progressive system

(2) Responsibility for the funding and payment of all

jackpots, fees and gross terminal revenue taxes associated with

the operation of the wide area progressive system.

(3) Control and operation of the computer monitoring

room required under this subpart.

(4) Other requirements requested by the Board,

including those required to comply with technical standards on

wide area progressive systems adopted by the Board.

(g) Each wide area progressive system shall be controlled

and operated from a computer monitoring room approved by the

Board. The computer monitoring room must:

(1) Be under the sole possession and control of, and

maintained and operated by, employees of the slot system

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operator designated in the slot system agreement for that

system. The employees shall be licensed or permitted as the

Board deems appropriate based on an analysis of specific duties

and responsibilities.

(2) Have its monitoring equipment subjected to

surveillance coverage either by the surveillance system of a

slot machine licensee participating in the slot system agreement

or by a dedicated surveillance system maintained by the slot

system operator. Surveillance coverage must be in accordance

with technical standards adopted by the Board.

(3) Be accessible through a locked door. The door

must be alarmed in a manner that audibly signals the

surveillance monitoring room for the surveillance system elected

under paragraph (2).

(4) Have a computer monitoring room entry log. The

log must be:

(i) Kept in the computer monitoring room.

(ii) Maintained in a book with bound numbered

pages that cannot be readily removed.

(iii) Signed by each person entering the computer

monitoring room who is not an employee of the slot system

operator expressly employed in the computer monitoring room on

his assigned shift. Each entry must contain the following:

324

(A) The date and time of entering and

exiting the room.

(B) The name, department or employer, where

applicable, license number of the person entering and exiting

the room and of the person authorizing the entry.

(C) The reason for entering the computer

monitoring room.

(5) Reside within a licensed facility or other

location approved by the Board.

(h) The Board may waive one or more of the requirements of

this section or technical standards applicable to wide area

progressive system adopted by the Board upon a determination

that the nonconforming wide area progressive system nonetheless

meets the operational integrity requirements of the act, this

subpart and technical standards adopted by the Board.

§ 461.14. Slot monitoring systems. (a) A slot monitoring system is the collective hardware,

software, communications technology and other ancillary

equipment used to collect, monitor, interpret, analyze,

authorize, report and audit data with regard to activity at slot

machines, inclusive of slot machine meter readings, error

conditions, slot machine security, accounting, player tracking

and productivity analysis.

325

(b) A slot monitoring system must comply with the act,

this subpart and technical standards on slot monitoring systems



slot monitoring system which has not had any interface between

it and slot machines and related systems tested and approved by


approval).

(d) The Board may waive one or more of the requirements of

this section or technical standards applicable to slot

monitoring systems adopted by the Board upon a determination

that the slot monitoring system as configured nonetheless meets

the operational integrity requirements of the act, this subpart


§ 461.15. Casino management systems. (a) A casino management system is the collective hardware,


equipment used to collect, monitor, interpret, analyze, report

and audit data with regard to activity at slot machines,

inclusive of slot machine level accounting transactions, player

tracking and productivity analysis.

326

(b) A casino management system must comply with the act,

this subpart and technical standards on casino management

systems adopted by the Board.


casino management system which has not had any interface between



approval).


this section or technical standards applicable to casino

management systems adopted by the Board upon a determination

that the casino management system as configured nonetheless



§ 461.16. Player tracking systems. (a) A player tracking system is the collective hardware,


equipment used to collect, monitor, interpret, analyze,

authorize, report and audit data with regard to player activity

at slot machines. Player activity may be tracked generally or

on an individual player basis.

327

(b) A player tracking system must comply with the act,

this subpart and technical standards on player tracking systems



player tracking system which has not had any interface between



approval).


this section or technical standards applicable to player

tracking systems adopted by the Board upon a determination that

the player tracking system as configured nonetheless meets the



§ 461.17. External bonusing systems. (a) An external bonusing system is the collective

hardware, software, communications technology and other

ancillary equipment used in conjunction with slot machines to

deliver randomly selected player incentives (bonus awards) to

active slot machine players and to effect the accurate metering

of the bonus award event on the slot machine.

(b) The combination of the slot machine theoretical payout

percentage plus the bonus awards generated by an external

bonusing system cannot equal or exceed 100% of the theoretical

328

payout for any slot machine on which the external bonus award is

available.

(c) Each slot machine must satisfy the minimum theoretical

payout percentage required under this subpart without the

contribution of any external bonus award available on the slot

machine.

(d) An external bonusing system must comply with the act,

this subpart and technical standards on external bonusing

systems adopted by the Board.

(e) A slot machine licensee is prohibited from utilizing

an external bonusing system which has not been tested and

approved by the Board under § 461.4 (relating to submission for

testing and approval).

(f) The Board may waive one or more of the requirement of

this section or technical standards applicable to external

bonusing systems adopted by the Board upon a determination that

the external bonusing system as configured nonetheless meets the



§ 461.18. Cashless funds transfer systems. (a) A cashless funds transfer system is the collective


ancillary equipment used to facilitate the electronic transfer

329

of cashable or noncashable credits to a patron at a slot machine

in connection with a promotional program.

(b) A cashless funds transfer system must comply with the

act, this subpart and technical standards on cashless funds

transfer systems adopted by the Board.


cashless funds transfer system which has not been tested and



(d) Prior to utilizing a cashless funds transfer system,

each slot machine licensee shall establish a system of internal

controls applicable to the cashless funds transfer system. The

internal controls shall be submitted to and approved by the

Board under § 465.3 (relating to internal control systems and

audit protocols). The internal control procedures submitted by

the slot machine licensee must address the integrity, security

and control of its cashless funds transfer system and include

the following:

(1) An overview of the system design.

(2) System access controls and restrictions.

(3) Override policies and restrictions.

(4) Backup and recovery procedures.

330

(5) Logical and physical access controls and

restrictions.

(6) Network security.

(7) Procedures for handling customer disputes.

(e) Transfer of electronic credits to a slot machine under

this section shall be initiated by a patron using an access

control approved by the Board. Access controls must require the

use of a unique access code for each patron. The access code

shall be selected by and only available to the patron.

(f) A record of each transfer of electronic credits to a

slot machine under this section shall be maintained by the slot

machine licensee and shall be identified by, at a minimum, the

date, time and the asset number of the slot machine to which the

transfer occurred and an identification number assigned to the

patron who initiated the transaction. The identification number

assigned to each patron for the purposes of this section must be

different from the unique access code selected by that patron as

part of an access control.

(g) On at least a monthly basis, each slot machine

licensee using a cashless funds transfer system shall provide a

statement to each patron who has participated in the system that

month. The statement shall include, at a minimum, the patron's

beginning monthly balance, credits earned, credits transferred

to a slot machine pursuant to this section and the patron's

331

monthly ending balance. With the written authorization of the

patron, the mailing of a monthly statement may be omitted or be

issued electronically to the patron. Notwithstanding the

foregoing, a monthly statement is not required for transfers of

temporary electronic credits or transfers of electronic credits

from a temporary anonymous account.

(h) A slot machine licensee shall notice the Board’s Slot

Lab in writing of any adjustment to the amount of any credit

transferred to a slot machine via a cashless funds transfer

system. The notice shall be made on or before the date of

adjustment.

(i) The Board may waive one or more of the requirements of

this section or technical standards applicable to cashless funds

transfer systems adopted by the Board upon a determination that

the nonconforming cashless funds transfer system nonetheless



§ 461.19. Remote system access.

(a) In emergency situations or as an element of technical

support, an employee of a licensed manufacturer may perform

analysis of, or render technical support with regard to, a slot

machine licensee’s slot monitoring system, casino management

system, player tracking system, external bonusing system,

cashless funds transfer system, wide area progressive system,

332

gaming voucher system or other Board-approved system from a

remote location.

(b) Remote system access shall be performed in accordance

with technical standards on remote system access adopted by the

Board.

(c) A slot machine licensee authorizing access to a system

by a licensed manufacturer under this section shall be

responsible for implementing a system of access protocols and

other controls over the physical integrity of any system and any

remote access process sufficient to insure appropriately limited

access to software and the system wide reliability of data.

§ 461.20. Server supported slot systems. (a) The following terms, when used in this section, have


otherwise:

Server supported slot machine - A slot machine connected

to, and administered by, a server supported slot system.

Slot machine server – A computer configured to receive,

store, authenticate and download to server supported slot

machines Board-approved slot machine games and other approved

software. A slot machine server may also be used to effect

changes in a server supported slot machine's configuration.

Server supported slot system - A system comprised of one or

more server supported slot machines connected to a slot machine

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server and its ancillary computer network for the ultimate

purpose of downloading Board-approved slot machine games and

other approved software to server supported slot machines.

Results from the play or operation of a server supported slot

machine connected to a server supported slot system must be

determined solely by the individual slot machine and not by the

slot machine server or any other ancillary computer network.

(b) A server supported slot system, and server supported

slot machines to which it is connected, must comply with the

act, this subpart and technical standards on server supported

slot systems, slot machine servers and server supported slot

machines adopted by the Board.


server supported slot system which has not been tested and



(d) Prior to utilizing a server supported slot system,

each slot machine licensee shall establish a system of internal

controls applicable to a server supported slot system. The



audit protocols). The internal control procedures submitted by

334

the slot machine licensee must address the integrity, security

and control of its server supported slot system.

(e) The Board may waive one or more of the requirements of

this section or technical standards applicable to server

supported slot systems, slot machine servers and server

supported slot machines adopted by the Board upon a

determination that the nonconforming server supported slot

system, slot machine server or server supported slot machine

nonetheless meets the operational integrity requirements of the


§ 461.21. Server based slot systems.

(a) The following terms, when used in this section, have


otherwise:

Server based slot machine - A slot machine accessing a

server based slot system.

Slot machine server - A computer configured to receive,

store and authenticate Board-approved slot machine games and

other approved software.

Server based slot system - A system comprised of one or

more server based slot machines connected to a slot machine

server and its ancillary computer network for the ultimate

purpose of facilitating access by a server based slot machine to

Board-approved slot machine games and other approved software

335

residing on the slot machine server. Results from the play or

operation of a server based slot machine must be determined

solely by the slot machine server and not by the individual slot

machine.

(b) A server based slot system, and server based slot

machines accessing the system, must comply with the act, this

subpart and technical standards on server based slot systems,

slot machine servers and server based slot machines adopted by

the Board.


server based slot system which has not been tested and approved

by the Board under § 461.4 (relating to submission for testing

and approval).

(d) Prior to utilizing a server based slot system, each

slot machine licensee shall establish a system of internal

controls applicable to a server based slot system. The internal

controls shall be submitted to and approved by the Board under §

465.3 (relating to internal control systems and audit

protocols). The internal control procedures submitted by the

slot machine licensee must address the integrity, security and

control of its server based slot system.


this section or technical standards applicable to server based

336

slot systems, slot machine servers and server based slot

machines adopted by the Board upon a determination that the

nonconforming server based slot system, slot machine server or

server based slot machine nonetheless meets the operational

integrity requirements of the act, this subpart and technical

standards adopted by the Board.

§ 461.22. Automated jackpot payout machines.

(a) An automated jackpot payout machine is the collective


ancillary equipment used to facilitate the payment of a jackpot

that is not totally and automatically paid directly from a slot

machine.

(b) An automated jackpot payout machine must comply with

the act, this subpart and technical standards on automated

jackpot payout machines adopted by the Board.

(c) A slot machine licensee is prohibited from utilizing

an automated jackpot payout machine which has not been tested

and approved by the Board under § 461.4 (relating to submission

for testing and approval).

(d) Prior to commencing use of an automated jackpot payout

machine, each slot machine licensee shall establish a

comprehensive system of internal controls addressing the payment

of jackpot payouts utilizing an automated jackpot payout machine

and the distribution of currency or coin, or both, to the

337

machines. The internal controls shall be submitted to, and

approved by the Board under § 465.3 (relating to internal

control systems and audit protocols.


this section or a technical standards applicable to automated

jackpot payout machines adopted by the Board upon a

determination that the automated jackpot payout machine as

configured nonetheless meets the operational integrity



§ 461.23. Slot machines and associated equipment utilizing

alterable storage media.




Alterable storage media - Memory or other storage medium,

such as an EEPROM, flash, optical or magnetic storage device,

which is contained in a slot machine or associated equipment

subject to approval under § 461.4 (relating to submission for

testing and approval), that allows the modification of programs

or data on the storage media during the normal operation of the

slot machine or associated equipment. This term does not

include:

338

(1) Memory or other storage medium typically

considered to be alterable but through either software or

hardware means approved by the Board have been rendered

unalterable and remain verifiable by the central control

computer system.

(2) Associated equipment using alterable storage

media that the Board determines are incapable of influencing the

integrity or outcome of game play.

(b) Use of alterable storage media. Any use of alterable

storage media in a slot machine or associated equipment must be

in compliance with the act, this subpart and technical standards

on alterable storage media adopted by the Board.

§ 461.24. Testing and software installation on the live gaming

floor.

(a) Prior to the testing of slot machines, associated

equipment and displays on a live gaming floor during a slot

machine licensee’s normal hours of operation, the slot machine

licensee shall notify the Board’s Gaming Lab in writing at least

72 hours prior to the test date, in a form and manner prescribed

by the Board. The notification must include the following:

(1) A detailed narrative description of the type of

testing to be conducted, including the reason for the testing, a

list of individuals conducting the testing and the slot machine

licensee’s procedures for conducting the testing.

339

(2) The date, time and approximate duration of the

testing.

(3) The model, slot machine location number and asset

number of the slot machine or machines to be tested.

(4) The location within the licensed facility where

the testing will occur.

(b) A slot machine licensee shall notify the Board’s Gaming

Lab at least 72 hours prior to the installation of any new

software or the installation of any change in previously

approved software, in a form and manner prescribed by the Board,

for:

(1) Automated gaming voucher and coupon redemption

machines.

(2) Wide area progressive systems.

(3) Slot monitoring systems.

(4) Casino management systems.

(5) Player tracking systems.

(6) External bonusing systems.

(7) Cashless funds transfer systems.

(8) Server supported slot systems.

(9) Server based slot systems.

(10) Automated jackpot payout machines.

(c) The notification required under subsection (b) must

include:

340

(1) A description of the reasons for the new

installation or change in previously approved software.

(2) A list of the computer components and programs or

versions to be modified or replaced.

(3) A description of any screens, menus, reports,

operating processes, configurable options, or settings that will

be affected.

(4) The method to be used to complete the proposed

installation.

(5) The date that the proposed modification will be

installed and the estimated time for completion.

(6) The name, title, and employer of the persons

performing the installation.

(7) A diagrammatic representation of the proposed

hardware design change.

(8) Restrictions on “update” access to the production

code to the person implementing the installation.

(9) Procedures to ensure that user and operator

manuals are updated to reflect changes in policies and

procedures resulting from the proposed installation.

CHAPTER 463. POSSESSION OF SLOT MACHINES

§ 463.1. Possession of slot machines generally.


341

(a) Except as otherwise provided in this section and 18

Pa.C.S. § 5513 (relating to gambling devices, gambling, etc.), a

person may not possess within this Commonwealth any slot machine

which may be used for gambling activity.

(b) The following persons and any employee or agent acting

on their behalf may, subject to any terms and conditions imposed

by the Board, possess slot machines in this Commonwealth for the

purposes described herein provided that the slot machines are

stored in secure locations as shall be specifically approved in

writing by the Board and that any slot machines located outside

of a licensed facility not be used for gambling activity:

(1) An applicant for, or The holder of a slot machine

license, for the purpose of maintaining for use, training or

actually using the machines in the operation of a licensed

facility.

(2) The holder of:

(i) A manufacturer license for the purpose of

manufacturing, exhibiting, demonstrating, training, or

preparing for transfer to a supplier licensee.

(ii) A supplier license for the purpose of

distributing, repairing, servicing, exhibiting or demonstrating

slot machines and any training with regard thereto.

342

(3) An educational institution, as authorized in

writing by the Board, for the purpose of teaching slot machine

design, operation, repair or servicing.

(4) A manufacturer or supplier of slot machines not

licensed within this Commonwealth, as authorized in writing by

the Board, for the limited purpose of temporary exhibition or

demonstration of same.

(5) A common carrier, for the purpose of transporting

slot machines in accordance § 463.2 (relating to the

transportation of slot machines into, within and out of this

Commonwealth).

(6) An employee or agent of the Board, the

Pennsylvania State Police or any law enforcement agency of the

Commonwealth for the purpose of fulfilling official duties or

responsibilities.

(7) Other persons authorized in writing by the Board

upon a finding that the possession of slot machines by such

persons in this Commonwealth is not contrary to the goals and

objectives of the act.

§ 463.2. Transportation of slot machines into, within and out

of the Commonwealth.


343

In furtherance of section 1511 of the act (relating to the

Declaration of exemption from federal laws prohibiting slot

machines), prior to the transport or movement of any slot

machine into this Commonwealth, from one person authorized to

possess slot machines under § 463.1 (relating to possession of

slot machines generally) to another person so authorized within

this Commonwealth or transport or movement out of this

Commonwealth, those persons causing such slot machine to be

transported or moved shall first notify the Board’s Director of

Gaming Laboratory Operations, in writing or in an electronic

format as approved by the Board. The notice shall be submitted

no later than the day the slot machine is transported or moved

and include the following information:

(1) The name and address of the person shipping or moving

the slot machine.

(2) The name and address of the person who owns the slot

machine, if different from the person shipping or moving such

machine.

(3) The name and address of any new owner in the event

ownership is being changed in conjunction with the shipment or

movement, if applicable.

(4) The method of shipment or movement and the name and

address of the common carrier or carriers, if applicable.

344

(5) The name and address of the person to whom the slot

machine is being sent and the destination of the slot machine,

if different from that address.

(6) The quantity of slot machines being shipped or moved

and the manufacturer’s serial number of each machine.

(7) The expected date and time of delivery to, or removal

from, any authorized location within this Commonwealth.

(8) The port of entry, or exit, if any, of the slot

machine if the origin or destination of the slot machine is

outside the continental United States.

(9) The reason for transporting or moving the slot

machine.

§ 463.3. Slot machine location.

(a) A gaming floor must consist of one or more areas within

a licensed facility approved by the Board for the placement and

operation of slot machines.

(b) Each slot machine in a slot machine area on a gaming

floor shall be placed at a location, which location may contain

no more than one slot machine, identified by number on a gaming

floor plan approved by the Board under section 1322 of the act

(relating to slot machine accounting controls and audits) and

shall also be identified by this slot machine location number

and an asset number on a Slot Machine Master List.

345

(c) For the purposes of this section, an asset number means

a unique number assigned to a slot machine by a slot machine

licensee for the purpose of tracking that slot machine while

owned by the slot machine licensee.

§ 463.4. Connection to the central computer system.

Prior to its utilization for gambling activity, each slot

machine on a gaming floor shall be connected or linked to a

central computer system having the capabilities and pursuant to

the terms of section 1323 of the act (relating to central

control computer system).

§ 463.5. Slot machine master list.

(a) Prior to the commencement of operations at a licensed

facility, each applicant for, or holder of, a slot machine

license shall file with the Board’s Director of Gaming

Laboratory Operations, in writing or in an electronic format

approved by the Board, a comprehensive list of slot machines

possessed by the applicant or licensee on its gaming floor, in

Board-approved restricted areas off the gaming floor but within

the licensed facility, and in Board-approved storage locations

in this Commonwealth off the premises of the licensed facility.

The list shall be denoted as a Slot Machine Master List and

contain the following information which, for those slot machines

located on the gaming floor, shall be presented for each slot

346

machine in consecutive order by the slot machine location number

under § 463.3 (relating to slot machine location):

(1) The date the list was prepared.

(2) A description of each slot machine by:

(i) Asset number and model and manufacturer’s

serial number.

(ii) Denomination, if configured for multiple

denominations so designate.

(iii) Manufacturer and machine type, noting with

specificity whether the machine is a high-boy, is a progressive

or a wide area progressive slot machine.

(iv) An indication as to whether the slot machine

is configured to communicate with a cashless funds transfer

system.

(v) An indication as to whether the slot machine

is configured to communicate with a gaming voucher system.

(3) For those slot machines located off the gaming

floor, an indication as to whether the slot machine is in a

Board-approved restricted area off the gaming floor but within

the licensed facility or in a Board-approved storage location in

this Commonwealth off the premises of the licensed facility.

(4) Other information the Board may require.

(b) Once a slot machine has been placed in an authorized

location on the gaming floor or is stored in a Board-approved

347

restricted area off the gaming floor but within the licensed

facility, all subsequent movements of that slot machine within

the licensed facility shall be recorded by a slot department

member in a machine movement log which includes the following:

(1) The asset number and model and manufacturer’s

serial number of the moved slot machine.

(2) The date and time of movement.

(3) The location from which the slot machine was

moved.

(4) The location to which the slot machine was moved.

(5) The date and time of any required notice to the

department in connection with activation or disabling of the

slot machine in the central computer system.

(6) The signature of the slot shift manager and the

lead technician verifying the movement of the slot machine in

compliance with this section.

(c) Documentation summarizing slot machine movements within

a licensed facility shall be submitted to the Board’s Director

of Gaming Laboratory Operations, in writing or in an electronic

format approved by the Board, on a daily basis.

(d) On the first Tuesday of each month following the

initial filing of a Slot Machine Master List, each applicant

for, or holder of, a slot machine license shall file with the

Board’s Director of Gaming Laboratory Operations, in writing or

348

in an electronic format as is approved by the Board, an updated

Slot Machine Master List documenting all slot machines possessed

by the applicant or licensee on its gaming floor, in Board-

approved restricted areas off the gaming floor but within the

licensed facility, and in Board-approved storage locations in

this Commonwealth off the premises of the licensed facility.

The updated list must be in a form, and contain the information,

required in subsection (a).

(e) Manufacturer licensees, supplier licensees,

educational institutions, Board-authorized manufacturers and

suppliers not licensed within this Commonwealth and regulatory

and law enforcement agencies having authority to possess slot

machines under § 463.1 (relating to possession of slot machines

generally) who cause slot machines to be transported or moved

shall file with the Board’s Director of Gaming Laboratory

Operations, in writing or in an electronic format as is approved

by the Board, a comprehensive list of slot machines possessed by

the person. The list shall be denoted as a Slot Machine Master

List and shall be filed within 3 business days of the initial

receipt of slot machines and shall contain the following

information:

(1) The date on which the list was prepared.

(2) A description of each slot machine by:

(i) Model and manufacturer's serial number.

349

(ii) Manufacturer and machine type, noting with

specificity whether the machine is a high-boy, is a progressive

or a wide area progressive slot machine.

(f) On the first Tuesday of each month following the

initial filing of a Slot Machine Master List, those persons

enumerated in subsection (e) shall file with the Board’s

Director of Gaming Laboratory Operations, in writing or in an

electronic format approved by the Board, an updated Slot Machine

Master List. The updated list must be in a form, and contain

the information, required in subsection (e).

§ 463.6. Notice to central computer system.

In addition to the recordkeeping requirements required

hereunder, prior to the placement of a slot machine on the

gaming floor, any movement of that slot machine between slot

machine locations on the gaming floor or removal of a slot

machine from the gaming floor, the slot machine licensee shall

provide the Department with notice of the slot movement, in a

form and pursuant to a time frame prescribed by the Department,

to insure activation or disabling, as appropriate in the central

computer system and the retrieval of real time meter information

from the slot machine coincident with the movement.

CHAPTER 465. ACCOUNTING AND INTERNAL CONTROLS


350

§ 465.1. Definitions. The following words and terms, when used in this part, have


otherwise:

Gaming day – A period of time not to exceed 24 hours

corresponding to the beginning and ending times of gaming

activities for the purpose of accounting reports and

determination by the central control computer system of gross

terminal revenue. The beginning and ending times of the gaming

day will be determined by the Board and will be uniform for all

slot machine licensees.

(i) Prior to commencing gaming operations, each slot

machine licensee shall submit to the Board, in writing, its

hours of operation, which times must correspond to the portion

of its gaming day it will be open to the public for the purpose

of gaming activities. A slot machine licensee may not commence

gaming operations until its hours of operation are approved by

the Board.

(ii) Any change in a slot machine licensee’s hours of

operation must be noticed to the Board in advance of the change

in writing or in an electronic format as approved by the Board.

Source: The provisions of this § 465.1 amended March 18, 2006, effective February 28, 2006, 36 Pa.B. 1347.

351

Signature – The written name of an employee of a slot

machine licensee signifying that the employee has prepared

forms, records, and documents or authorized, observed, or

participated in a transaction to a sufficient extent to attest

to the accuracy of the information recorded thereon, in

conformity with this subpart and the slot machine licensee's

system of internal controls and which is in either of the

following formats:

(i) The employee’s first initial, last name and Board

license number, written by the employee, immediately adjacent to

or above the clearly printed or preprinted title of the

employee.

(ii) The employee's identification number or other computer

identification code issued to the employee by the slot machine

licensee, if the document to be signed is authorized by the

Board to be generated by a slot computer system and the method

of signature is approved or required by the Board.

§ 465.2. Accounting records.

(a) A slot machine licensee shall maintain complete,

accurate, and legible records of all transactions pertaining to

the revenues and expenses of each licensed facility.

(b) General accounting records shall be maintained on a

double entry system of accounting with transactions recorded on

a basis consistent with generally accepted accounting principles

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in the United States. Detailed, supporting, and subsidiary

records sufficient to meet the requirements of subsection (c)

shall also be maintained in accordance with the requirements of

this chapter.

(c) The detailed, supporting, and subsidiary records

include:

(1) Records pertaining to revenue that is taxable or

subject to taxation under the act.

(2) Records pertaining to the financial statements

and all transactions impacting the financial statements of the

slot machine licensee including contracts or agreements with

licensed manufacturers, suppliers, junket enterprises, certified

and registered vendors, contractors, consultants, management

companies, attorneys and law firms, accountants and accounting

firms, insurance companies, and financial institutions,

including statements and reconciliations related thereto.

(3) Records which identify the handle, payout, actual

win amounts and percentages, theoretical win amounts and

percentages, and differences between theoretical and actual win

amounts and percentages, for each slot machine on a week-to-

date, month-to-date and year-to-date basis.

(4) Records supporting the costs of complimentary

services and items as defined in § 465.8 (relating to

complimentary services or items).

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(5) Records of all loans and other amounts payable by


(6) Records of all investments, advances, loan and

receivable balances due to the slot machine licensee.

(7) Records created in connection with the system of

internal controls submitted to the Board under § 465.3 (relating


(8) Records of all returned checks.

§ 465.3. Internal control systems and audit protocols.

(a) An applicant for, or holder of, a slot machine

license shall submit to the Board and the Department, in the

manner the Board requires, a narrative description of its

initial system of administrative and accounting procedures,

including its internal control systems and audit protocols

(collectively referred to as its “internal controls”) at least

90 days before gaming operations are to commence, unless

otherwise directed by the Board. Under section 1322(c) of the

act (relating to slot machine accounting controls and audits), a

written system of internal controls must include:

(1) Records of direct and indirect ownership in the

proposed slot machine license, its affiliates, intermediaries,

subsidiaries or holding companies.

(2) Organization charts depicting appropriate

segregation of functions and responsibilities.

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(3) A description of the duties and responsibilities

of each position shown on the organization charts and their

respective lines of authority, provided that a slot machine

applicant or licensee may not be required to submit job

descriptions for positions required to hold a nongaming employee

registration.

(4) A detailed narrative description of the

administrative and accounting procedures designed to satisfy the

requirements of this part.

(5) A record retention policy in accordance with

§ 465.7 (relating to retention, storage and destructions of

books, records and documents).

(6) Procedures to ensure that assets are safeguarded,

and counted in conformance with effective count procedures.

(7) Other items the Board may require in its

discretion.

(b) A submission must be accompanied by the following:

(1) An attestation by its chief executive officer or

other competent person with a direct reporting relationship to

the chief executive officer attesting that the officer believes,

in good faith, that the submitted internal controls conform to

the requirements of the act and this part.

(2) An attestation by its chief financial officer or

other competent person with a direct reporting relationship to

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the chief financial officer attesting that the officer believes,

in good faith, that the submitted internal controls are designed

to provide reasonable assurance that the financial reporting

conforms to generally accepted accounting principles in the

United States and comply with applicable laws and regulations,

including the act and this part.

(c) The initial submission must also be accompanied by a

report from an independent certified public accountant or, when

appropriate, independent registered public accounting firm,

licensed to practice in this Commonwealth. The report should

express an opinion as to the effectiveness of the design of the

submitted system of internal controls over financial reporting

and should further express an opinion as to whether the

submitted system of internal controls materially deviates from

the requirements of applicable laws and regulations, including

the act and this part.

(d) A submission by a slot machine licensee or applicant

must include, at a minimum, the following:

(1) Administrative controls which include, without

limitation, the procedures and records that relate to the

decision making processes leading to management's authorization

of transactions.

(2) Accounting controls which have as their primary

objectives the safeguarding of assets and revenues and the

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reliability of financial records. The accounting controls must

be designed to provide reasonable assurance that:

(i) Transactions or financial events which occur

in the operation of a slot machine are executed in accordance

with management's general and specific authorization, as


(ii) Transactions or financial events which occur

in the operation of a slot machine are recorded as necessary to

permit preparation of financial statements in conformity with

generally accepted accounting principles in the United States,

the act and this part.

(iii) Transactions or financial events which

occur in the operation of a slot machine are recorded in a

manner which provides reliable records, accounts and reports,

including the recording of cash and evidences of indebtedness,

for use in the preparation of reports to the Board related to

slot machines.

(iv) Transactions or financial events which occur

in the operation of a slot machine are recorded adequately to

permit proper and timely reporting of gross terminal revenue and

the calculation thereof and of fees and taxes and to maintain

accountability for assets.

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(v) Access to assets is permitted only in

accordance with management's general and specific authorization,

as approved by the Board.

(vi) The recorded accountability for assets is

compared with existing physical assets at reasonable intervals

and appropriate action is taken with respect to any

discrepancies.

(3) Procedures and controls for ensuring, in

accordance with section 1323 of the act (relating to the central

control computer system), that each slot machine directly

provides and communicates all required activities and financial

details to the central control computer system as set by the

Board.

(4) Procedures and controls for ensuring that all

functions, duties and responsibilities are appropriately

segregated and performed in accordance with sound financial

practices by competent, qualified personnel.

(5) Procedures and controls for ensuring, through the

use of surveillance and security departments, that the licensed

facility is secure during normal operations and during any

emergencies due to malfunctioning equipment, loss of power,

natural disaster or any other cause.

(e) The Board, in consultation with the Department, will

review each initial submission made under subsection (a) and

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determine whether it conforms to the requirements of the act and

this part and provides adequate and effective controls for the

operation of slot machines at a licensed facility. A slot

machine licensee is prohibited from commencing gaming operations

until its system of internal controls is approved by the Board.

(f) A slot machine licensee may, upon submission to the

Board and the Department in the manner prescribed, of a

narrative description of a change or amendment in its system of

internal controls and the two original signed certifications

described in subsection (b), implement the change on the 30th

calendar day following the filing of a complete submission.

Submissions received by the Board after 2 p.m. will be

considered to have been submitted on the next business day.

(g) If during the 30-day review period in subsection (f),

the Board’s Bureau of Corporate Compliance and Internal Controls

preliminarily determines that a procedure in a submission

contains a substantial and material insufficiency likely to have

a direct and materially adverse impact on the integrity of slot

operations or the control of gross terminal revenue, that

Bureau, by written notice to the slot machine licensee, will:

(1) Specify the nature of the insufficiency and,

where possible, an acceptable alternative procedure.

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(2) Direct that the 30 calendar day review period in

subsection (f) is tolled and that any internal controls at issue

not be implemented until approved by the Executive Director.

(h) Examples of submissions that may, under appropriate

circumstances, be determined to contain a substantial and

material insufficiency likely to have a direct and materially

adverse impact on the integrity of slot operations or the

control of gross terminal revenue must include, without

limitation, the following:

(1) Submissions that fail to provide an audit trail

sufficient to permit the review of gaming operations or the

reconstruction of gross terminal revenue transactions.

(2) Submissions that fail to provide for the

segregation of incompatible functions so that no employee is in

a position both to commit an error or to perpetrate a fraud and

to conceal the error or fraud in the normal course of the

employees duties.

(3) Submissions that do not include forms or other

materials referenced in the submission or required by the act or

this part that are essential elements of the internal controls,

the absence of which prevents a meaningful review of the

submission.

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(4) Submissions that would implement operations or

accounting procedures not yet authorized by the act or this

part.

(5) Submissions that are dependent upon the use of

equipment or related devices or software not yet approved by the

Board, unless such submissions are required as part of an

authorized test of the equipment or related device or software.

(i) Notwithstanding anything contained herein to the

contrary, and subject to the exception in subsection (j), any

change or amendment to submissions with regard to organization

charts pursuant to subsection (a)(2) and the descriptions of the

duties and responsibilities of each position shown on the

organization charts pursuant to subsection(a)(3)(collectively

referred to as the "jobs compendium") may be implemented by the

slot machine licensee without the prior approval of the Board

provided that the change or amendment is submitted to the Board

within 5 business days of the date of implementation, which

filing includes:

(1) A detailed cover letter listing by department

each position title to which modification has been made.

(2) A brief summary of each change.

(3) Instructions regarding any changes in page

numbers and the date of implementation.

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(j) Notwithstanding any provision to the contrary, the

submission of changes or amendments to a jobs compendium

involving changes or amendments to license categories, job

codes, job functions, reporting lines (including new and deleted

positions) or job titles in the information technology, internal

audit, security, finance, slot operations, or surveillance

departments must be accompanied by the attestations required in

subsection (b) and be submitted to the Board by the end of the

business day of implementation.

(k) If in the course of its review of a change or

amendment to a jobs compendium the Board’s Bureau of Licensing

preliminarily determines that the change or amendment contains a

substantial and material insufficiency likely to have a direct

and materially adverse impact on the integrity of slot

operations or the control of gross terminal revenue, that

Bureau, by written notice to the slot machine licensee, will:

(1) Specify the nature of the insufficiency and, when

possible, an acceptable alternative procedure.

(2) Advise the slot machine licensee as to whether

the implementation of the change or amendment must be suspended

pending further evaluation by the Board.

(l) A current version of the internal controls of a slot

machine licensee shall be maintained in or made available in

electronic form through secure computer access to the accounting

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and surveillance departments of the slot machine licensee and

the Board's on site facilities required under § 465.9 (relating

to licensed facility). The slot machine licensee shall also

maintain a copy, either in paper or electronic form, of any

superseded internal control procedures, along with the two

certifications required to be submitted with respect thereto,

for a minimum of 5 years. Each page of the internal controls

must indicate the date on which it was approved by the Board.

§ 465.4. Forms, records and documents.

(a) Information required by this part to be placed on any

form, record, or document and in stored data shall be recorded

on such form, record, or document and in stored data in ink or

other permanent form.

(b) Whenever duplicate or triplicate copies are required

of a form, record, or document, the original, duplicate, and

triplicate copies must have the name of the recipient originally

receiving a copy preprinted on the bottom of that copy so as to

differentiate one from the other.

(c) Whenever under this part, forms or serial numbers are

required to be accounted for and an exception is noted, such

exceptions shall be reported in writing to the slot machine


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licensee’s internal audit department and the Board's Bureau of

Investigations and Enforcement within 2 days of identification

of the exception or upon its confirmation, whichever occurs

earlier.

(d) Unless otherwise specified in this part, all forms,

records, documents, and stored data required to be prepared,

maintained, and controlled by this chapter must:

(1) Be in a form prescribed or authorized by the

Board.

(2) Have the name of the establishment and the title

of the form, record, document and, for stored data, the date

imprinted or preprinted thereon.

(e) Nothing in this chapter shall be construed as

prohibiting or discouraging a slot machine licensee from

preparing more copies of any form, record, or document than that

prescribed by this chapter.

§ 465.5. Standard financial and statistical reports.

(a) Each slot machine licensee shall, upon the request of

the Board, file monthly, quarterly, and annual reports of

financial and statistical data. The data may be used by the

Board to evaluate the financial position and operating

performance of individual licensees and compile information

regarding the performance and trends of the industry in this

Commonwealth.

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(b) The Board may periodically prescribe standard

reporting forms and corresponding filing instructions to be used

by each licensee in filing the monthly, quarterly, and annual

reports referenced in subsection (a).

(c) In the event of a license termination, change in

business entity, or material change in ownership, the Board may

in its discretion require the filing of financial and

statistical reports as it deems necessary, as of the date of

occurrence of the event. The request must be made in writing to


(d) Adjustments resulting from the annual audit required

in § 465.6 (relating to annual audit and other reports) shall be

recorded in the accounting records of the year to which the

adjustment relates. If the adjustments were not reflected in

any annual report required hereunder and the Board concludes

that the adjustments are significant, a revised annual report

may be required from the slot machine licensee. The revised

filing shall be due within 30 calendar days after written

notification to the slot machine licensee, unless an extension

is requested in writing by the slot machine licensee prior to

the required filing date and an extension is granted by the

Board.

§ 465.6. Annual audit; other reports; suspicious activity and

currency transaction reporting.

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(a) Each slot machine licensee shall, at its own expense,

cause its annual financial statements to be audited in

accordance with generally accepted auditing standards (when

applicable, the Standards of the Public Company Accounting

Oversight Board (United States)) by an independent certified

public accountant or, when appropriate, an independent

registered public accounting firm, licensed to practice in this

Commonwealth.

(b) The annual financial statements shall be prepared on a

comparative basis for the current and prior fiscal year, and

present financial position and results of operations in

conformity with generally accepted accounting principles in the

United States.

(c) The financial statements required by this section must

include a footnote reconciling and explaining any differences

between the financial statements included in any annual report

filed in conformity with § 465.5 (relating to standard financial

and statistical reports) and the audited financial statements.

The footnote must, at a minimum, disclose the effect of

adjustments on:

(1) Revenue from the operation of slot machines.

(2) Slot machine revenue net of expenses for

complimentary services or items.

(3) Total costs and expenses.

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(4) Income before extraordinary items.

(5) Net income.

(d) Two copies of the audited financial statements,

together with any management letter or report prepared thereon

by the slot machine licensee's independent certified public

accountant or, when appropriate, independent registered public

accounting firm, shall be filed with the Board not later than 60

days after the end of the licensee's fiscal year.

(e) Each slot machine licensee shall require the

independent certified public accountant or, when appropriate,

independent registered public accounting firm auditing its

financial statements to render the following additional reports:

(1) A report on material weaknesses or significant

deficiencies in the system of internal controls noted in the

course of the examination of the financial statements.

(2) A report expressing the opinion of the

independent certified public accountant or independent

registered public accounting firm as to the adequacy of the slot

machine licensee’s system of internal controls over financial

reporting based upon the description of the system of internal

controls approved for the slot machine licensee under § 465.3


When appropriate, the report should make specific

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recommendations regarding improvements in the system of internal

controls.

(3) The slot machine licensee shall prepare a written

response to the independent certified public accountant's or

independent registered public accounting firm’s reports required

by paragraphs (1) and (2). The response must indicate, in

detail, any corrective actions taken. The response shall be

submitted to the Board within 90 days of receipt of the reports.

(f) The slot machine licensee shall file two copies of the

reports required by subsection (e), and two copies of any other

reports on internal controls, administrative controls, or other

matters relative to the slot machine licensee's accounting or

operating procedures rendered by the licensee's independent

certified public accountant or independent registered public

accounting firm within 120 days following the end of the

licensee’s fiscal year or upon receipt, whichever is earlier.

(g) If the slot machine licensee is publicly held, the

slot machine licensee shall submit to the Board's Bureau of

Corporate Compliance and Internal Controls three copies of any

report, including forms S-1, 8-K, 10-Q, 10-K, proxy or

information statements and all registration statements, required

to be filed by such slot machine licensee with the Securities

and Exchange Commission or other domestic or foreign securities

regulatory agency. The filing with the Board shall be made

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within 10 days of the time of filing with the applicable

Commission or regulatory agency or the due date prescribed by

the applicable Commission or regulatory agency, which ever

occurs first.

(h) If an independent certified public accountant or

independent registered public accounting firm who was previously

engaged as the principal accountant to audit the slot machine

licensee's financial statements resigns or is dismissed as the

slot machine licensee's principal accountant, or another

independent certified public accountant or independent

registered public accounting firm is engaged as principal

accountant, the slot machine licensee shall file a report with

the Board's Bureau of Corporate Compliance and Internal Controls

within 10 days following the end of the month in which the event

occurs, setting forth the following:

(1) The date of the resignation, dismissal or

engagement, as appropriate.

(2) Whether in connection with the audits of the 2

most recent years preceding such resignation, dismissal, or

engagement there were any disagreements with the former

accountant on any matter of accounting principles or practices,

financial statement disclosure, or auditing scope or procedure,

including a description of each such disagreement. The

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disagreements to be reported include those resolved and those

not resolved.

(3) Whether the principal accountant's report on the

financial statements for any of the past 2 years contained an

adverse opinion or disclaimer of opinion or was qualified. The

nature of such adverse opinion, disclaimer of opinion, or

qualification shall be described.

(4) The slot machine licensee shall request the

former accountant to furnish to the slot machine licensee a

letter addressed to the Board stating whether he agrees with the

statements made by the slot machine licensee in response to

paragraph (2). The letter shall be filed with the Board as an

exhibit to the report required by paragraph (2).

(i) Each slot machine licensee shall file with the Board a

copy of any Suspicious Activity Report-Casino (SARC) it is

required to file under 31 CFR 103.21 (relating to reports by

casinos of suspicious transactions). Each SARC shall be filed

with the Board concurrently with the Federal filing in a manner

to be prescribed by the Board.

(j) Each slot machine licensee shall file with the Board a

copy of any Currency Transaction Report by Casino (CTRC) it is

required to file under 31 CFR 103.22 (relating to reports of

transactions in currency). Each CTRC shall be filed with the

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Board concurrently with the federal filing in a manner to be


(k) Prior to commencing gaming operations, each slot

machine licensee shall file with the Board, in a manner to be

prescribed by the Board, a copy of its compliance program

required under 31 CFR 103.64 (relating to special rules for

casinos). Thereafter, each slot machine licensee shall be

obligated to file with the Board any amendment or supplement to

its compliance program concurrent with the effective date of the

amendment or supplement.

(l) A slot machine licensee, director, officer, employee

or agent who reports a suspicious activity under subsection (a)

may not notify any person involved in the suspicious activity

that the suspicious activity has been reported.

§ 465.7. Retention, storage and destruction of books, records

and documents.

(a) For the purposes of this section, "books, records and

documents" means any book, record or document pertaining to,

prepared in or generated by the operation of the licensed

facility including all forms, reports, accounting records,

ledgers, subsidiary records, computer generated data, internal

audit records, correspondence and personnel records required to

be generated and maintained by this part. This definition

applies without regard to the medium through which the record is

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generated or maintained, for example, paper, magnetic media or

encoded disk.

(b) Original books, records and documents pertaining to

the operation of a licensed facility be:

(1) Prepared and maintained in a complete, accurate

and legible form. Electronic data should be stored in a format

that ensures readability, regardless of whether the technology

or software that created or maintained it has become obsolete.

(2) Retained on the site of the licensed facility or

at another secure location approved in accordance with this

section.

(3) Held immediately available for inspection by

agents of the Board, the Department and the Pennsylvania State

Police during all hours of operation.

(4) Organized and indexed in a manner to provide

immediate accessibility to agents of the Board, the Department

and the Pennsylvania State Police.

(5) Destroyed only after expiration of the minimum

retention period specified in subsection (c), except that the

Board may, upon the written request of a slot machine licensee

and for good cause shown, permit the destruction at an earlier

date.

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(c) Original books, records and documents shall be

retained by a slot machine licensee for a minimum of 5 years

with the following exceptions:

(1) Documentation with regard to gaming vouchers

reported to the Board as possibly counterfeit, altered or

tampered with should be retained for a minimum of 2 years.

(2) Coupons entitling patrons to cash or slot machine

credits, whether unused, voided or redeemed shall be retained

for a minimum of 6 months.

(3) Voided gaming vouchers and gaming vouchers

redeemed at a location other than a slot machine shall be

retained for a minimum of 6 months.

(4) Gaming vouchers redeemed at a slot machine shall

be retained for a minimum of 7 days.

(d) A slot machine licensee may request, in writing, that

the Board approve a location outside the licensed facility to

store original books, records and documents. The request must


(1) A detailed description of the proposed offsite

facility, including security and fire safety systems.

(2) The procedures under which the Board, the

Department and the Pennsylvania State Police will be able to

gain access to the original books, records and documents

retained at the offsite facility.

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(e) A slot machine licensee may request, in writing, that

the Board approve a microfilm, microfiche or other suitable

media system for the copying and storage of original books,

records and documents. The request must include representations

regarding:

(1) The processing, preservation and maintenance

methods which will be employed to insure that the books, records

and documents are available in a format which makes them readily

available for review and copying.

(2) The inspection and quality control methods which

will be employed to insure that microfilm, microfiche or other

media when displayed on a reader/viewer or reproduced on paper

exhibits a high degree of legibility and readability.

(3) The availability of a reader-printer for use by

the Board, the Department and the Pennsylvania State Police at

the licensed facility or other location approved by the Board

and the readiness with which the books, records or documents

being stored on microfilm, microfiche or other media can be

located, read and reproduced.

(4) The availability of a detailed index of all

microfilmed, microfiched or other stored data maintained and

arranged in a manner to permit the immediate location of any

particular book, record or document.

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(f) Nothing herein shall be construed as relieving a slot

machine licensee from meeting any obligation to prepare or

maintain any book, record or document required by any other

Federal, State or local governmental body, authority or agency.

§ 465.8. Complimentary services or items.

(a) A slot machine licensee shall develop, maintain and

apply adequate internal controls over the authorization and

issuance of complimentary services and items as that term is

defined in § 439.1 (relating to definitions). The internal

controls must include the following:

(1) The procedures by which the slot machine licensee

delegates to its employees the authority to approve the issuance

of complimentary services and items.

(2) The procedures by which conditions or limits, if

any, which may apply to such authority are established and

modified, including limits based on relationships between the

authorizer and recipient.

(3) The provisions employed to insure the effective

auditing of complimentaries.

(b) Nothing herein shall be deemed to require a slot

machine licensee to obtain Board approval of the internal

controls required under subsection (a) provided, however, that

each slot licensee shall be required to maintain a written

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record of the internal controls and the specific employees to

whom they apply.

(c) Complimentary services or items shall be recorded as

follows:

(1) A complimentary service or item provided directly

to a patron in the normal course of a slot machine licensee's

business shall be recorded at an amount based upon the full

retail price normally charged for such service or item by the

licensee.

(2) A complimentary service or item not offered for

sale to a patron in the normal course of a slot machine

licensee's business but provided directly by the slot machine

licensee shall be recorded at an amount based upon the actual

cost to the slot machine licensee of providing the service or

item.


or indirectly to a patron on behalf of a slot machine licensee

by a third party not affiliated with the slot machine licensee

shall be recorded at an amount based upon the actual cost to the

licensee of having the third party provide the service or item.


or indirectly to a patron on behalf of a slot machine licensee

by a third party who is affiliated with the licensee shall be

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recorded by the licensee in accordance with the provisions of

this section as if the affiliated third party were the licensee.

(d) If a slot machine licensee provides complimentary cash

and noncash gifts recorded at a value of $10,000 or more to a

person or the person’s guests within any 5-day period, the slot

machine licensee shall record the reason why the gifts were

provided and maintain the records available for inspection by

the Board and the Pennsylvania State Police. When the reason

complimentary cash and noncash gifts were provided involves the

person's player rating, that rating shall be based upon an

evaluation of the amount and frequency of play by the person as

recorded in the slot machine licensee's player rating system.

For the purposes of this section, “guest” means any person who

receives complimentary services or items as a result of his

relationship with the person receiving the primary complimentary

services or items.

(e) Slot machine licensees shall submit to the Board a

report listing each person who, under subsection (d), received

$10,000 or more in complimentary cash and noncash gifts within

any 5-day period ending during the preceding month. The report

shall be filed by the last day of the month following the month

in which the complimentary cash and noncash gifts were issued

and include the total amount of complimentary cash or noncash

gifts provided to each person broken down into categories for

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food and beverage, hotel accommodations, travel and other

services.

§ 465.9. Licensed facility.

(a) The licensed facility must be equipped with a

surveillance system configured and approved in accordance with

§§ 465.10 and 465.11 (relating to the surveillance system;

surveillance department control; surveillance department

restrictions and surveillance system recording formats). Except

as otherwise provided in subsection (d)(1), the surveillance

system shall be under the exclusive control of the surveillance

department.

(b) Restricted areas within the licensed facility shall be

designated and approved by the Board for the repair and storage

of slot machines. Any area approved and utilized within the

licensed facility for slot machine repair shall be covered by

the approved surveillance system.

(c) Emergency exits from the gaming floor must be equipped

with an audible alarm system, approved by the Board, that

produces a loud, distinguishable warning sound, discernable in

the vicinity of the exit, whenever the emergency door is opened.

The alarm system shall be designed to require deactivation and

reset by means of a key. The key is to be maintained by the

security department.

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(d) Slot machine licensees shall, in accordance with

section 1207(13) of the act (relating to regulatory authority of

Board), provide for and maintain onsite facilities for use by

the Board, the Department, and the Pennsylvania State Police for

the purpose of carrying out their respective responsibilities

(collectively referred to as the "onsite facilities"). The

onsite facilities must be located in the same building as, and

be located reasonably proximate to, the gaming floor and include

suitable office space, equipment, partitions and supplies to

meet the continuing needs of the Board, the Department and the

Pennsylvania State Police at the facility including the

following:

(1) A surveillance system monitoring room, located

within the onsite facilities, with full camera control

capability for the reception of transmissions generated by each

camera approved for use as part of the slot machine licensee's

surveillance system. Full camera control capability includes

the ability to override the camera control capability of the

slot machine licensee’s surveillance system.

(2) An area for the detention of individuals detained

or taken into custody by the Pennsylvania State Police. The

detention area shall be located within the onsite facilities and

consist of a bench or other apparatus which is permanently

affixed to the wall to which the person in custody can be

379

handcuffed with as little discomfort to that person as is

reasonably possible under the circumstances.

(3) A fingerprinting and photographing facility for

use by the Pennsylvania State Police located in conformance with

and outfitted in compliance with, specifications to be

determined by the Pennsylvania State Police.

(4) Adequate computer, telephone and copying

capability to meet the Board’s, the Department’s and the

Pennsylvania State Police's continuing data processing and

related needs.

(5) Direct telephone connections between the onsite

facilities and the slot machine licensee's surveillance

monitoring room and its security department.

(6) Computer terminals facilitating read only access

to any computerized slot monitoring system or casino management

system, or both, used by the slot machine licensee in its gaming

operations.

(e) Keys or alternative locking mechanisms securing access

to the onsite facilities shall be under the exclusive custody

and control of the Board, the Department or the Pennsylvania

State Police respectively.

(f) Slot machine licensees shall provide additional

accommodations within the licensed facility as shall be

requested by the Board, the Department or the Pennsylvania State

380

Police to accommodate periodic audit, compliance or

investigative reviews at the licensed facility.

(g) Slot machine licensees shall provide adequate parking

spaces reasonably proximate to the onsite facilities, clearly

marked for the Board, the Department or Pennsylvania State

Police use only.

(h) Slot machine licensees shall equip licensed facilities

with communication systems necessary to insure an effective

level of communication between the licensed facility and the

Board, the Department, the Pennsylvania State Police, any

applicable local law enforcement agency and any relevant

emergency first responders.

§ 465.10. Surveillance system; surveillance department control;

surveillance department restrictions.

(a) The Board, through the Bureau, will review

surveillance system specifications, inclusive of the camera

configuration and any changes or modifications to the system

specifications, to determine whether the system provides the

adequate and effective surveillance of activities inside and

outside the licensed facility mandated by section 1207(11) of

the act (relating to regulatory authority of Board). A slot

Source: The provisions of this § 465.9 amended July 1, 2006, effective June 15, 2006, 36 Pa.B. 3407.

381

machine licensee may not commence gaming operations until its

surveillance system is approved by the Board.

(b) Each slot machine licensee shall at all times provide

the Board and the Pennsylvania State Police, upon request, with

timely access to its surveillance system and its transmissions.

Each member of its surveillance department shall timely comply

with any request made by the Board or the Pennsylvania State

Police to:

(1) Use, as necessary, any surveillance monitoring

room in the licensed facility.

(2) Display on the monitors in the monitoring room

any event capable of being monitored by the surveillance system.

(3) Make a video and, if applicable, audio recording

of, and take a still photograph of, any event capable of being

monitored by the surveillance system.

(i) The slot machine licensee shall preserve and

store each recording or photograph in accordance with the

directions of the Board or the Pennsylvania State Police.

(ii) The Board and the Pennsylvania State Police

shall have unfettered access to each recording or photograph

and, at the request of the Board or Pennsylvania State Police,

access to a recording or photograph may be denied to a

particular employee or department of the slot machine licensee.

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(c) The surveillance system required in this section must


(1) Light sensitive cameras with lenses of sufficient

magnification to allow the operator to read information on a

slot machine reel strip and credit meter and equipped with 360˚

pan, tilt and zoom capabilities, without camera stops, to

effectively and clandestinely monitor in detail and from various

vantage points, the following:

(i) The gaming conducted at the slot machines in

the licensed facility.

(ii) The operations conducted at and in the

cashiers' cage and any satellite cage.

(iii) The operations conducted at automated bill

breaker, gaming voucher redemption, coupon redemption and

jackpot payout machines.

(iv) The count processes conducted in the count

room.

(v) The movement of cash and slot cash storage

boxes within the licensed facility.

(vi) The entrances and exits to the licensed

facility, the gaming floor, and the count room.

(vii) Other areas designated by the Board.

(2) Video recording equipment which, at a minimum,

must:

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(i) Permit the preservation and viewing of a

clear copy of the transmission produced by any camera connected

to the surveillance system.

(ii) Be capable of superimposing the time and

date of the transmission on each recording made by the video

recording equipment.

(iii) Enable the operator to identify and locate,

through the use of a meter, counter or other device or method,

a particular event which was recorded.

(3) Recording media which shall be replaced

immediately upon the manifestation of any significant

degradation in the quality of the images or sound, if

applicable, recorded thereon. If videotape is utilized it shall

be used for no more than 1 year.

(4) Audio capability in the count room installed in a

manner that conforms to 18 Pa.C.S. §§ 5701-5781 (relating to

Wiretapping and Electronic Surveillance Control Act).

(5) One or more monitoring rooms in the licensed

facility which shall be staffed by employees of the slot machine

licensee's surveillance department who shall at all times

monitor the activities enumerated in paragraph (1) and elsewhere

in the licensed facility as required by the Board. Each

monitoring room shall be equipped with or serviced by:

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(i) A communication system capable of monitoring

all of the licensed facility's security department activities.

(ii) Computer terminals which facilitate read

only access to any computerized slot monitoring system or casino

management system, or both, used by the slot machine licensee in

its gaming operation.

(iii)Connections to all casino alarm systems.

The systems must provide a visible, audible or combination

signal. A robbery, fire or emergency alarm must be perceptually

distinguishable from all nonemergency alarms in a manner


(iv) An updated photo library, consisting of

photographs that are no more than 4 years old, of all current

employees of the slot machine licensee, which photo library

shall be available to the Board and the State Police.

(v) Contain and have readily available current

copies of the following:

(A) An operational blueprint of the gaming

floor and all areas of the licensed facility subject to camera

coverage.

(B) Operating procedures addressing the

evacuation of the licensed facility in the event of fire or

other emergency.

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(C) A contingency plan addressing a planned

shutdown of the surveillance system and the contingency plan

required by subsection (g) addressing any equipment failure that

affects the slot machine licensee’s monitoring room together

with an emergency contact listing with telephone numbers for

persons required to be notified of those events.

(6) An emergency power system, tested at intervals

not to exceed 6 months, which can be used to operate the

surveillance system in the event of a power failure.

(7) A preventive maintenance program, implemented by

technicians assigned to the surveillance department, which

insures that the entire surveillance system is maintained in

proper working order and that the covers over the cameras are

cleaned in accordance with a routine maintenance schedule.

(d) Areas subject to camera coverage under this section

must contain continuous lighting that is of sufficient quality

to produce clear video recordings and still picture

reproductions.

(e) In addition to other requirements imposed by this

section, a slot machine licensee's surveillance system must be

required to continuously record, during the appropriate times

and in the manner indicated in this subsection, transmissions

386

from cameras used to observe the following locations, persons,

activities or transactions:

(1) Each transaction conducted at a cashiering

location, whether or not that cashiering location services

patrons. Coverage of the transaction must include, but not be

limited to, recording transmissions from cameras used to observe

the face of each person transacting business at each cashiering

location from the direction of the cashier.

(2) The main bank, vault, satellite cages and other

areas as required by the Board.

(3) The collection of slot cash storage boxes.

(4) The count procedures conducted in the count room.

(5) Any armored car collection or delivery.

(6) Automated bill breaker, gaming voucher

redemption, coupon redemption and jackpot payout machines

whenever the machines are opened for replenishment or other

servicing.

(7) The entrances and exits to the licensed facility,

the gaming floor, the cashier’s cage and the count room.

(f) Slot machine licensees shall maintain a surveillance

log of all surveillance activities in the monitoring room. The

log shall be maintained by monitoring room personnel in a book

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with bound numbered pages that cannot be readily removed or

shall be maintained in such electronic format the Board

approves. The log shall be stored and retained in accordance

with § 465.7 (relating to retention, storage and destruction of

books, records and documents). The following information shall

be recorded in a surveillance log:

(1) Date and time each surveillance event commenced.

(2) The name and Board issued license credential

number of each person who initiates, performs, or supervises the

surveillance.

(3) Where suspicious activity, suspected or alleged

regulatory violations or suspected or alleged criminal activity

is involved, the reason for the surveillance, including the

name, if known, alias or description of each individual being

monitored, and a brief description of the activity in which the

person being monitoring is engaged. This entry should also

include a notation of the reading on the meter, counter or

device specified in subsection (c)(2)(iii) that identifies the

point on the video recording at which the event was recorded.

(4) The time at which each video recording is

commenced and terminated, if different than when surveillance

commenced or terminated.

(5) Time each surveillance event terminated.

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(6) A summary of the results of the surveillance.

(7) A complete description of the time, date and, if

known, the cause of any equipment or camera malfunctions, and

the time at which the security department was apprised of the

malfunction in accordance with the casino licensee's internal

controls submitted under § 465.3(d)(5) (relating to internal

control systems and audit protocols).

(g) In accordance with § 465.3(d)(5), each slot machine

licensee shall have a contingency plan, to be utilized whenever

there is an equipment failure that affects the slot machine

licensee's monitoring room or any other aspect of its

surveillance system or operations.

(h) The Bureau shall be notified immediately, in a manner

the Board, of any incident of equipment failure as noted in

subsection (f) including the time and cause of the malfunction,

if known, the time the slot machine licensee's security

department was notified of the malfunction and the nature of any

communications with the security department relating to the

malfunction.

(i) The Bureau shall be notified, in a manner approved by

the Board, in advance of the following:

(1) Relocation of an approved camera.

(2) Change in an approved camera's specifications.

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(3) Change in lighting for areas required to be

subject to camera coverage.

(4) Addition or change to the surveillance system.

(j) The surveillance recordings required under subsection

(e) shall be retained for a minimum of 30 days. All other

surveillance recordings shall be retained for 7 days. All

surveillance recordings shall be made available for review upon

request by the Board or the Pennsylvania State Police. In

addition, any recording determined by Board agents or the

Pennsylvania State Police as being of potential evidentiary

value shall be stored in accordance with Board or Pennsylvania

State Police directives or turned over to Board agents or the

Pennsylvania State Police upon request. At the request and

expense of the slot machine licensee, a copy of any recording

turned over to the Board or the Pennsylvania State Police may be

made available to the slot machine licensee.

(k) Each surveillance employee assigned to the monitoring

room shall work from the employee’s own monitoring station.

(l) In accordance with § 465.3(a)(5), each slot machine

licensee shall be required to submit, for Board approval, a

minimum staffing submission with regard to its surveillance

monitor rooms. The minimum staffing submission must consider

the size and layout of the licensed facility as well as the

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number of slot machines and must at all times provide for

adequate and effective surveillance of activities inside and

outside the licensed facility. A slot machine licensee may not

implement a change or amendment in its surveillance monitor room

minimum staffing submission without Board approval of the change

or amendment.

(m) A slot machine licensee's surveillance department

employees shall be independent of all other departments.

(n) A present or former surveillance department employee

may not accept employment as a key employee or gaming employee

with the same slot machine licensee for whom he was previously

employed as a surveillance department employee unless 1 year has

passed since the former surveillance department employee worked

in the surveillance department. The Board may, upon the filing

of a written petition, waive this restriction and permit the

employment of a present or former surveillance department

employee in a particular position upon consideration of the

following factors:

(1) Whether the former surveillance department

employee will be employed in a department or area of operation

that the surveillance department monitors.

(2) Whether the surveillance and security systems of

the slot machine licensee will be jeopardized or compromised by

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the employment of the former surveillance department employee in

the particular position.

(3) Whether the former surveillance department

employee's knowledge of the procedures of the surveillance

department would facilitate the commission by any person of

irregularities or illegal acts or the concealment of any actions

or errors.

(o) Entrances to the surveillance monitoring rooms may not

be visible from the gaming floor. Any person entering the

surveillance monitoring room who is not an employee of the

surveillance department assigned to the monitoring room on the

particular shift corresponding to the time of entry must sign a

monitoring room entry log upon entering the monitoring room.

The monitoring room entry log shall be:

(1) Maintained in the monitoring room by monitoring

room personnel and retained in accordance with § 465.7 (relating

to record retention).

(2) Maintained in a book with bound numbered pages

that cannot be readily removed or shall be maintained in such

electronic format as the Board approves.

(3) Signed by each person entering the monitoring

room, with each entry containing the following:

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(i) The date and time of entering the monitoring

room.

(ii) The entering person's name and his

department or affiliation.

(iii) The reason for entering the monitoring

room.

(iv) The name of the person authorizing the

person's entry into the monitoring room.

(v) The date and time of exiting the monitoring

room.

(4) Made available for inspection by the Board and


§ 465.11. Surveillance system recording formats.

(a) A slot machine licensee may utilize either an analog

or digital video recording format provided the format selected

incorporates current technology with regard to secure system

access, video cameras, monitors, recorders, video printers,

switches, selectors and other ancillary equipment and provides

for adequate and effective surveillance of activities inside and

outside the licensed facility.

Source: The provisions of this § 465.10 amended April 1, 2006, effective March 16, 2006, 36 Pa.B. 1577; amended July 1, 2006, effective June 15, 2006, 36 Pa.B. 3407.

393

(b) Digital video recording systems utilized by a slot

machine licensee must be in compliance with the technical

standards on digital video recording systems promulgated by rule

or order of the Board, as amended or supplemented.

§ 465.12. Slot machine licensee's organization.

(a) Slot machine licensees’ systems of internal controls

must, in accordance with the provisions of section 1322 of the

act (relating to slot machine accounting controls and audits)

and § 465.3 (relating to internal control systems and audit

protocols), include organization charts depicting appropriate

segregation of functions and responsibilities and descriptions

of the duties and responsibilities for each position shown on

each organization chart. Slot machine licensees shall be

permitted, except as otherwise provided in this section, to

tailor organizational structures to meet the needs or policies

of a particular management philosophy. The proposed

organizational structure of each slot machine licensee shall be

approved by the Board in the absence of a conflict between the

organizational structure and the following criteria. The

criteria are designed to maintain the integrity of the slot

machine operation. A slot machine licensee's organization

charts must provide for:

(1) A system of personnel and chain of command which

permits management and supervisory personnel to be held

394

accountable for actions or omissions within their areas of

responsibility.

(2) The segregation of incompatible functions, duties

and responsibilities so that no employee is in a position both

to commit an error or to perpetrate a fraud and to conceal the

error or fraud in the normal course of his or her duties.

(3) The performance of all functions, duties and

responsibilities in accordance with sound financial practices by

competent, qualified personnel.

(4) The areas of responsibility which are not so

extensive as to be impractical for one person to monitor.

(5) A chief executive officer. For the purposes of

this section, a chief executive officer means the person located

at the licensed facility who is ultimately responsible for the

daily conduct of the slot machine licensee’s gaming business

regardless of the form of business association of the slot

machine licensee or applicant or the particular title which that

person or any other person holds. Each supervisor of a

department required by subsection (b) shall report directly to

the chief executive officer of the slot machine licensee

regarding administrative matters and daily operations. The slot

machine licensee’s organization charts must designate which

positions, in the absence of the chief executive officer, shall

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be designated as having responsibility for the daily conduct of

the slot machine licensee’s gaming business.

(b) In addition to satisfying the requirements of

subsection (a), a slot machine licensee's system of internal

controls must include, at a minimum, the following departments

and supervisory positions, each of which must be categorized as

mandatory and must cooperate with, yet perform independently of,

all other mandatory departments and supervisory positions of the

slot machine licensee. Notwithstanding the foregoing, a

department or supervisor of a slot machine licensee that is not

required or authorized by this section may operate under or in

conjunction with a mandatory department or supervisor provided

the organizational structure is consistent with the standards

contained within the act and subsection (a). Mandatory

departments and supervisory positions are as follows:

(1) A surveillance department supervised by a person

located at the licensed facility who functions, for regulatory

purposes, as the director of surveillance. The director of

surveillance shall be subject to the reporting requirements

specified in subsection (c) and shall be licensed as a key

employee. The surveillance department shall be responsible for

the following:

396

(i) The clandestine surveillance of the

operation of, and gaming conducted at, slot machines.

(ii) The clandestine surveillance of the

operation of automated bill breaker, gaming voucher, coupon

redemption and jackpot payout machines.

(iii) The clandestine surveillance of the

operation of the cashiers' cage and any satellite cage.

(iv) The audio and video recording of activities

in the count room in conformance with 18 Pa.C.S. §§ 5701-5781

(relating to Wiretapping and Electronic Surveillance Control

Act), and the video recording of movements of cash and slot cash

storage boxes.

(v) The detection of cheating, theft,

embezzlement, and other illegal activities within the licensed

facility.

(vi) The detection of the presence of any person

who is required to be excluded or ejected from the licensed

facility under section 1514 of the act (relating to regulation

requiring exclusion of certain persons), who may be excluded or

ejected from the licensed facility under section 1515 of the act

(relating to repeat offenders excludable from the gaming floor

and licensed gaming facilities) or is self excluded from the

gaming floor and gaming activities at all licensed facilities

397

under section 1516 of the act (relating to list of persons self-

excluded from gaming activities).

(vii) The video recording of those locations,

persons, activities or transactions required under § 465.10(e)

(relating to surveillance system; surveillance department

control; surveillance department restrictions) and of any

illegal and unusual activities monitored by the surveillance

department.

(viii) Providing immediate notice to appropriate

supervisors, the Bureau and the Pennsylvania State Police upon

detecting, and also upon commencing video recording of, any

person who is engaging in or attempting to engage in, or who is

reasonably suspected of cheating, theft, embezzlement, a

violation of this part or other illegal activities, including

any person who is required to be excluded or ejected from the

licensed facility under section 1514 of the act, who may be

excluded or ejected from the licensed facility under section

1515 of the act or is self excluded from the gaming floor and

gaming activities at all licensed facilities under section 1516

of the act.

(ix) The clandestine surveillance of any slot

computer system or equipment designated for coverage by the

Board in conjunction with the approval of a slot machine system,

398

including a slot monitoring system, casino management system,

wide area progressive system, gaming voucher system and any

communication equipment with the central control computer.

(2) An internal audit department supervised by a

person located at the licensed facility who functions, for

regulatory purposes, as the director of internal audit. The

director of internal audit shall be subject to the reporting

requirements specified in subsection (c) and shall be licensed

as a key employee.

(3) An information technology department supervised

by a person located at the licensed facility who functions, for

regulatory purposes, as the information technology director.

The information technology director shall be licensed as a key

employee and be responsible for the quality, reliability and

accuracy of all slot computer systems used by the slot machine

licensee regardless of whether data, software or systems are

located within or outside the licensed facility. The

information technology director shall further be responsible for

the security and physical integrity of, and the accountability

and maintenance of, the following:

(i) Access codes and other security controls

used to insure appropriately limited access to computer software

and the system wide reliability of data.

399

(ii) Computer tapes, disks, or other electronic

storage media containing data relevant to the slot machine

licensee’s operations.

(iii) Computer hardware, communications equipment

and software used in the conduct of the slot machine licensee’s

operations.

(iv) The computerized slot monitoring system

utilized by the slot machine licensee. In specific, the

information technology director shall ensure that:

(A) Slot machines located on the gaming

floor are connected electronically to the slot machine

licensee’s computerized slot monitoring system and to the

Commonwealth’s central control computer in accordance with

section 1323 (relating to central control computer system).

(B) The security features of the

computerized slot monitoring system prohibit, at a minimum, the

deletion, creation or modification of any data unless a

permanent record is created that sets forth:

(I) The original information.

(II) Modifications to the original

information.

(III) The identity of the employee

making the modification.

400

(VI) If applicable, the identity of

each employee authorizing the modification.

(C) Computerized jackpot payout systems

utilized by the slot machine licensee are configured to require

that any modification of $100 or more to the original amount

recorded on a computerized jackpot payout or system override is

authorized by two finance department employees, one of whom is

in a position of greater authority than the individual preparing

the jackpot payout.

(D) Procedures and controls are in place

that define and limit interaction between both the slot

operations department and finance department and the

computerized slot monitoring system including access to system

menus, the establishment of slot machine profile parameters, and

the ability of each department to access, delete, create or

modify information contained in the slot monitoring system.

(4) A slot operations department supervised by a

person located at the licensed facility who functions, for

regulatory purposes, as the director of slot operations. The

director of slot operations shall be licensed as a key employee

and be responsible for the operation of, and conduct of gaming

at, slot machines within the licensed facility.

401

(5) A security department supervised by a person


purposes, as the director of security. The security department

must be licensed as a key employee and be responsible for the

overall security of the licensed facility including the

following:

(i) The physical safety of natural persons.

(ii) The physical safeguarding of assets.

(iii) The protection of the property of both the

patron and the slot machine licensee from illegal activity.

(iv) In collaboration with the human resources

department or its functional equivalent, the design,

implementation and enforcement of a system for the issuance of

access badges.

(v) The design, implementation and enforcement

of a system for the issuance of temporary access credentials.

(vi) The recording of any unusual incidents

within the licensed facility in which the security department is

involved. Each incident shall be recorded by security

department personnel in a book with bound numbered pages that

cannot be readily removed or be maintained in an electronic

format the Board approves. The log shall be stored and retained

in accordance with § 465.7 (relating to retention, storage and

402

destruction of books, records and documents). The following

information shall be recorded:

(1) The assignment number.

(2) The date and time.

(3) The nature of the incident.

(4) The persons involved in the incident.

(5) The security department employees

assigned to cover the incident.

(vii) The identification and removal of any

person who is required to be excluded or ejected from the

licensed facility under section 1514 of the act, who may be

excluded or ejected from the licensed facility under section

1515 of the act or is self excluded from the gaming floor and

gaming activities at all licensed facilities under section 1516

of the act.

(viii) The performance of all duties and

responsibilities required under the system of internal controls

submitted and approved under § 465.3.

(ix) Providing immediate notice to the

Pennsylvania State Police upon detecting the presence in the

licensed facility of a person possessing a firearm or handgun in

403

violation of § 465.14 (relating to firearms; possession within a

licensed facility).

(x) Providing immediate notice to appropriate

supervisors, the Bureau and the Pennsylvania State Police upon

detecting any person who is engaging in or attempting to engage

in, or who is reasonably suspected of cheating, theft,

embezzlement, a violation of this part or other illegal

activities, including any person who is required to be excluded

or ejected from the licensed facility under section 1514 of the

act, who may be excluded or ejected from the licensed facility

under section 1515 of the act or is self excluded from the

gaming floor and gaming activities at all licensed facilities

under section 1516 of the act.

(6) A finance department supervised by a person


purposes, as the director of finance. The director of finance

shall be licensed as a key employee and shall be responsible for

all finance functions including the preparation and control of

records and data, the control of stored data, the control of

unused forms, the accounting for and comparison of operational

data and forms, and the control and supervision of the cashiers’

cage, satellite cages and the count room. In addition to the

requirement that the director of finance be licensed as a key

404

employee, the supervisor of the cashiers’ cage shall, on all

shifts, be licensed as a key employee.

(c) The supervisors of the surveillance and internal audit

departments required by subsection (b) shall report directly to

one of the following persons or entities regarding matters of

policy, purpose, responsibility and authority, which persons or

entities shall also control the hiring, termination and salary

of each supervisor:

(1) The independent audit committee of the slot

machine licensee's board of directors.

(2) The independent audit committee of the board of

directors of any holding or intermediary company of the slot

machine licensee which has authority to direct the operations of


(3) The senior surveillance or internal audit

executives of any holding or intermediate company included in

paragraph (2) if the most senior executive in the reporting line

reports directly to the independent audit committee of the board

of directors of the holding or intermediary company.

(4) For slot machine licensees or holding companies

which are not corporate entities, the noncorporate equivalent of

any of the persons or entities listed in paragraphs (1) - (3).

405

(d) The slot machine licensee's personnel shall be trained

in all policies, procedures and internal controls relevant to

each employee's individual function. Special instructional

programs shall be developed by the slot machine licensee in

addition to any on-the-job instruction sufficient to enable all

members of the departments required by this section to be

thoroughly conversant in, and knowledgeable of, the required

manner of performance of all transactions relating to their

functions.

(e) Notwithstanding any other provision to the contrary, a

slot machine licensee may, with the prior approval of the Board,

designate and assign more than one person to serve jointly as

the supervisor of a department required by this section. Each

person approved to serve as a joint supervisor of such a

department shall be located at the licensed facility and shall

be individually and jointly accountable and responsible for the

operations of that department.

(f) In the event of a vacancy in the chief executive

officer position or any mandatory department supervisory

position required by subsection (b), the following apply:

(1) The slot machine licensee shall notify the Board

within 5 days from the date of vacancy. The notice must be in

writing and indicate the following information:

406

(i) The vacant position.

(ii) The date on which the position became

vacant.

(iii) The date on which it is anticipated that

the vacancy will be filled on a permanent basis.

(2) The slot machine licensee shall designate a

person to assume the duties and responsibilities of the vacant

position within 30 days after the date of vacancy. The person

may assume the duties and responsibilities of the vacant

position on a temporary basis, provided that:

(i) The person does not also function as the

department supervisor for any other mandatory department

required by this section.

(ii) The person’s areas of responsibility will

not be so extensive as to be impractical for one person to

monitor.

(iii) The position shall be filled on a permanent

basis within 120 days of the original date of vacancy.

(3) Within 5 days of filling any vacancy under

paragraph (2), the slot machine licensee shall notify the Board

thereof. The notice must be in writing and shall indicate the

following:

407

(i) The position.

(ii) The name of the person designated.

(iii) The date that the vacancy was filled.

(iv) An indication of whether the position has

been filled on a temporary or permanent basis.

(4) The notices required by this subsection shall be

directed to the Board's Bureau of Licensing.

§ 465.13. Access badges and temporary access credentials.

(a) For the purposes of this section, an access badge is

any form of identification issued by a slot machine licensee and

worn by a slot machine licensee employee, for purposes of

identifying the areas of the licensed facility where the

employee may obtain access in the course of the performance of

his normal duties.

(b) Slot machine licensees shall establish procedures, in

writing, for readily and effectively identifying each person

permitted, during the normal course of performing his or her

duties, to have access to one or more restricted areas within

the licensed facility.

(1) The procedures must include the requirement that

persons wear, in a visible location, an access badge.


408

(2) The procedures must also include a methodology

for updating the access badge procedures to reflect changes and

amendments in the slot machine licensee’s table of organization

and the positions approved with respect thereto.

(3) The procedures must further include provisions

expressly addressing access by employees of licensed

manufacturers, licensed suppliers and registered and certified

vendors.

(c) Slot machine licensees shall also establish

procedures, in writing, for readily and effectively identifying

each person permitted, under temporary or emergency

circumstances, to have access to one or more restricted areas

within the licensed facility.

(1) The procedures must include the requirement that

those persons wear, in a visible location, a temporary access

badge.

(2) The procedures must also include a methodology

for updating the temporary access badge procedures to reflect

changes and amendments in the slot machine licensee’s table of

organization and the positions approved with respect thereto.

(3) The procedures must further include provisions

expressly addressing temporary or emergency access by licensed

manufacturers, licensed suppliers and registered and certified

vendors.

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(d) The procedure required in subsection (b) are to be

designed, implemented and enforced by the security department in

collaboration with the human resources department or its

functional equivalent. The procedures in subsection (c) are to

be designed, implemented and enforced by the security

department. Procedures addressing both access badges and

temporary access badges shall be retained in the security

department and be made immediately available to the Board and

the Pennsylvania State Police upon request. The slot machine

licensee shall cooperate with the Board in making amendments to

its procedures to improve the effectiveness of its access badge

and temporary access badge systems.

§ 465.14. Firearms; possession within a licensed facility.

(a) Individuals, including security department personnel,

are prohibited from possessing any firearm or handgun within a

licensed facility without the express written approval of the

Board, in accordance with authorization procedures as the Board

shall determine. Notwithstanding the general prohibition:

(1) Pennsylvania State Police assigned to its Gaming

Enforcement Office may possess a firearm or handgun within the

licensed facility.

(2) An on duty officer or agent of any local, State

or Federal law enforcement agency having primary jurisdiction

over the licensed facility may possess a firearm or handgun in

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all areas of the licensed facility except the gaming floor or

restricted areas servicing the slot operations where that

officer or agent is acting in his official capacity. Officers

or agents possessing firearms or handguns within a licensed

facility under this section shall notify the Board and the

Pennsylvania State Police Gaming Enforcement Office of their

presence in the licensed facility. Notification shall be made

immediately upon entry into the licensed facility or prior to

arrival at the licensed facility, if feasible. Notification

shall not be required if exigent circumstances exist.

(b) A slot machine licensee may not employ off duty law

enforcement officers to provide security related services on the

gaming floor, in restricted areas within the licensed facility

or in any manner in connection with the conduct of slot machine

operations.

(c) To obtain approval for the possession of a firearm or

handgun within a licensed facility, an individual shall be

required to demonstrate to the Board that the individual:

(1) Has received an adequate course of training in

the possession and use of the firearm or handgun.

(2) Is the holder of a valid license for the

possession of the firearm or handgun.

(3) Has a compelling need for the possession of the

firearm or handgun within the licensed facility.

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(d) Each slot machine licensee shall cause to be posted in

a conspicuous location at each entrance to the licensed facility

signs that may be easily read stating: The possession by any

person of any firearm or handgun within this licensed facility

without the express written permission of the Pennsylvania

Gaming Control Board is prohibited.

§ 465.15. Security department minimum staffing.

In accordance with § 465.3(d)(5) (relating to internal

control systems and audit protocols), slot machine licensees

shall be required to submit, for Board approval, a minimum

staffing submission with regard to its security department. The

minimum staffing submission must consider the size and layout of

the licensed facility as well as the number and configuration of

slot machines on the gaming floor and must at all times provide

for adequate and effective security of the gaming floor and any

restricted areas servicing the gaming operation. A slot machine

licensee may not implement a change or amendment in its security

department minimum staffing submission without Board approval of

the change or amendment.

§ 465.16. Cashiers’ cage.

(a) Each establishment shall have on, immediately adjacent

or reasonably proximate to the gaming floor, a physical

structure known as a cashiers’ cage to house the cashiers and to

serve as the central location in the licensed facility for:

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(1) The custody of the cage inventory comprised of

cash (currency or coin) and the forms, documents, and records

normally associated with the operation of a slot cage.

(2) The initial financial consolidation of all

transactions relating to slot machine activity.

(3) Other functions normally associated with the

operation of a cashiers’ cage.

(b) The cashiers’ cage must be designed and constructed to

provide maximum security for the materials housed therein and

the activities performed therein. Its design and construction

must include:

(1) Manually triggered silent alarm systems located

at the cashiers’ window, vault and in any ancillary office space

adjacent or proximate thereto. The systems must be connected

directly to the monitoring room of the surveillance department

and to the security department.

(2) A double door entry and exit system that will not

permit a person to pass through the second door until the first

door is securely locked. In addition, the following apply:

(i) The first door leading from the gaming floor

of the double door entry and exit system must be controlled by

the security department, the surveillance department or, in the

alternative, a Board-approved computerized access system

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designed and administered to provide a functionally equivalent

level of security. The second door of the double door entry and

exit system must be controlled by the cashiers’ cage.

(ii) The system must have surveillance coverage

which shall be monitored by the surveillance department.

(iii) An entrance to the cashiers’ cage that is

not a double door entry and exit system shall be an alarmed

emergency exit door only.

(3) Separate manual locks on each door of the double

door entry and exit system, the keys to which shall be different

from each other.

(c) Each establishment may also have one or more satellite

cages separate and apart from the cashiers’ cage, established to

maximize security, efficient operations, or patron convenience.

A satellite cage may perform any or all of the functions of the

cashiers’ cage and must be equipped with an alarm system in

compliance with subsection (b)(1). The functions which are

conducted in a satellite cage shall be subject to the accounting

controls applicable to a cashiers’ cage set forth in this

subpart.

(d) Each slot machine licensee shall maintain immediately

available to the Board and the Pennsylvania State Police a

current list, with license numbers, of all persons possessing

414

the combination or keys to the locks securing the double door

entry and exit system restricting access to the cashiers’ cage

and any satellite cage and the vault as well as a list of all

persons possessing the ability to activate or deactivate alarm

systems for the cashiers’ cage, any satellite cage and vault.

§ 465.17. Accounting controls for the cashiers’ cage.

(a) The assets for which slot cashiers are responsible

shall be maintained on an imprest basis. At the end of each

shift, slot cashiers assigned to the outgoing shift shall record

on a cashiers' count sheet the face value of each cage inventory

item counted and the total of the opening and closing cage

inventories and shall reconcile the total closing inventory with

the total opening inventory. Each cashiers’ count sheet shall

be signed by the preparing cashier attesting to the accuracy of

the information thereon.

(b) At the opening of every shift, in addition to the

imprest funds normally maintained by slot cashiers, each slot

machine licensee shall have on hand in the cashiers’ cage or

readily available thereto, a reserve cash bankroll adequately

funded to pay winning patrons.

(c) The cashiers’ cage and any satellite cage shall be

physically segregated by personnel and function as follows:

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(1) Slot cashiers shall operate with individual

imprest inventories of cash and their functions shall include

the following:

(i) The receipt of cash and cash equivalents

from patrons in exchange for cash.

(ii) The receipt of personal checks for gaming

and nongaming purposes from patrons in exchange for cash,

subject to any limitations on amount required by the Board.

(iii) The receipt of cash, cash equivalents,

checks issued by the slot machine licensee, annuity jackpot

checks, wire transfers and cashless funds transfers from patrons

to establish a customer deposit.

(iv) The receipt of customer deposit forms from

patrons in exchange for cash.

(v) The preparation of jackpot payout slips in


the Board.

(vi) The receipt of gaming vouchers from patrons,

or from authorized employees who received gaming vouchers as

gratuities, in exchange for cash.

(vii) Issuance, receipt and reconciliation of

imprest funds used by slot attendants, including an imprest

change/pouch payout fund.

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(viii) The issuance of cash to automated bill

breaker, gaming voucher, coupon redemption and jackpot payout

machines in exchange for proper documentation.

(2) Main bank cashier functions must include the

following:

(i) The receipt of cash, cash equivalents,

gaming vouchers, jackpot payout slips and personal checks

received for gaming and nongaming purposes from slot cashiers in

exchange for cash.

(ii) The receipt of cash from the count rooms.

(iii) The receipt of personal checks accepted for

gaming and nongaming purposes from slot cashiers for deposit.

(iv) The preparation of the overall cage

reconciliation and accounting records.

(v) The preparation of the daily bank deposit

for cash, cash equivalents and personal checks.

(vi) The issuance, receipt and reconciliation of

imprest funds used by slot attendants.

(vii) The receipt from slot cashiers of

documentation with signatures thereon, required to be prepared

for the effective segregation of functions in the cashiers’

cage.

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(viii) The responsibility for the reserve cash

bankroll.

(ix) The receipt of unsecured currency and

unsecured gaming vouchers and preparation of reports thereon.

(d) At the end of the gaming day a copy of the cashiers’

count sheets and related documentation shall be forwarded to the

accounting department for agreement of opening and closing

inventories, agreement of amounts thereon to other forms,

records, and documents required by this subpart and recording of

transactions.

§ 465.18. Bill validators and slot cash storage boxes.

(a) Slot machines shall be equipped with a bill validator

configured to accept any combination of currency, gaming

vouchers, coupons and such other instruments as are authorized

by the Board for incrementing credits on a slot machine.

(b) Access to the bill validator shall be controlled by at

least one lock, the key to which shall be controlled by the slot

operations department.

(c) The bill validator in a slot machine shall have

contained in it a secure tamper resistant container known as a

slot cash storage box in which shall be deposited all currency,

gaming vouchers, coupons and Board-approved instruments inserted

into the bill validator.

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(d) The slot cash storage box shall be secured to the bill

validator by two separate locks, the keys to which shall be

different from each other, one of which may be the lock to the

belly door or main door of the slot machine and a second of

which is the lock on the release mechanism on the slot cash

storage box. If there is not a full door on the bill validator,

the lock on the release mechanism on the slot cash storage box

must detect and display whether it is locked or unlocked and

communicate whether it is locked or unlocked to a slot

monitoring system. The key to the belly door or main door of the

slot machine shall be maintained and controlled by the slot

operations department. The key to the lock securing the release

mechanism on the slot cash storage box shall be maintained and

controlled by the security department. The security department

shall establish a sign-out and sign-in procedure with regard to

this key which includes documentation of this transfer.

(e) A slot cash storage box must:

(1) Have at least one lock securing the contents of

the slot cash storage box, the key to which shall be maintained

and controlled by the finance department.

(2) Have a slot opening through which currency,

gaming vouchers and coupons can be inserted into the slot cash

storage box.

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(3) Have a mechanical arrangement or device that

prohibits removal of currency, gaming vouchers and coupons from

the slot opening whenever the slot cash storage box is removed

from the bill validator.

(4) Be fully enclosed, except for openings that may

be required for the operation of the bill validator or the slot

cash storage box. However, the location and size of such

openings may not affect the security of the slot cash storage

box, its contents or the bill validator, and shall be approved

by the Board.

(5) Have an asset number that is permanently

imprinted, affixed or impressed on the outside of the slot cash

storage box which corresponds to the asset number of the slot

machine to which the bill validator has been attached. In lieu

of the asset number, a slot machine licensee may develop and

maintain, with prior Board approval, a system for assigning a

unique identification number to its slot cash storage boxes.

The system must ensure that each slot cash storage box can

readily be identified, either manually or by computer, when in

use with, attached to, and removed from a particular bill

validator. Each unique identification number must be

permanently imprinted, affixed or impressed on the outside of

each slot cash storage box that does not otherwise bear an asset

number. The asset number or unique identification number must

420

be conspicuous and clearly visible to persons involved in

removing or replacing the slot cash storage box in the bill

validator and through the slot machine licensee's surveillance

system. Notwithstanding the foregoing, emergency slot cash

storage boxes may be maintained without such numbers, provided

the word emergency is permanently imprinted, affixed or

impressed thereon, and when put into use, are temporarily marked

with the asset number of the slot machine to which the bill

validator is attached.

(6) Be designed and installed in a manner that

renders the slot machine inoperable in the event of the removal

or absence of the slot cash storage box.

§ 465.19. Transportation of slot cash storage boxes to and from

bill validators; storage.

(a) Slot machine licensees shall place on file with the

Board, in the manner prescribed by the Board, a schedule setting

forth the specific times at which slot cash storage boxes will

be brought to or removed from the bill validators along with

specifications as to what areas of the gaming floor will be

dropped on each pick-up day and the specific transportation

route to be utilized from the gaming floor to the count room.

Slot machine licensees shall also maintain immediately available


421

to the Board and the Pennsylvania State Police, a current list,

with license numbers, of all employees participating in the

transportation of slot cash storage boxes. Any deviation from

the schedule setting forth the specific times at which slot cash

storage boxes will be brought to or removed from the bill

validators, change in the areas to be dropped or the

transportation route to the count room shall be noticed to the

Board in advance in a manner prescribed by the Board.

(b) Slot cash storage boxes removed from bill validators

shall be transported directly to, and secured in, the count room

or a trolley storage area located immediately adjacent thereto,

configured and secured in a manner approved by the Board, by a

minimum of three employees, at least one of which is a member of

the security department and at least one of which is a member of

the finance department.

(1) Upon its removal from a bill validator, a slot

cash storage box shall be placed immediately in an enclosed

trolley which is secured by two separately keyed locks. The key

to one lock shall be maintained and controlled by the finance

department. The key to the second lock shall be maintained and

controlled by the security department. Access to the security

department’s key shall be controlled, at a minimum, by a sign-

out and sign-in procedure. The security department key shall be

returned to its secure location immediately upon the completion

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of the collection and transportation of the slot cash storage

boxes.

(2) Prior to the movement of any trolley containing

slot cash storage boxes from the gaming floor into the count

room, the drop team supervisor shall verify that the number of

slot cash storage boxes being transported from the gaming floor

equals the number of slot cash storage boxes scheduled to be

collected that day.

(3) A slot cash storage box being replaced by an

emergency slot cash storage box shall be transported to, and

secured in, the count room by a minimum of three employees, at

least one of which is a member of the finance department and at

least one of which is a member of the security department.

(c) Slot cash storage boxes not contained in a bill

validator, including emergency slot cash storage boxes which are

not actively in use, shall be stored in the count room or other

secure area outside the count room approved by the Board, in an

enclosed storage cabinet or trolley and secured in such cabinet

or trolley by a separately keyed, double locking system. The

key to one lock shall be maintained and controlled by the

finance department and the key to the second lock shall be

maintained and controlled by a security department. Access to

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the security department’s key shall be limited to a supervisor

of that department.

(d) Notwithstanding subsection (b), the security

department may, immediately prior to the commencement of the

count process, issue its key to the storage cabinet or trolley

to a count room supervisor for the purpose of allowing count

room personnel to gain access to the slot cash storage boxes to

be counted. Any key transferred from the custody of the

security department to the count room supervisor shall be

returned immediately following the conclusion of the count of

the slot cash storage boxes and the return of any empty

emergency drop boxes and slot cash storage boxes to their

respective storage cabinet or trolley by the count room

supervisor. The security department shall establish a sign-out

and sign-in procedure which includes documentation of this

transfer.

§ 465.20. Acceptance of tips or gratuities from patrons.

A key employee or gaming employee who serves in a

supervisory position is prohibited from soliciting or accepting,

and no other gaming employee may solicit, any tip or gratuity

from any patron of the slot machine licensee where he is


424

employed. The slot machine licensee may not permit any

practices prohibited by this section.

§ 465.21. Personal check cashing.

(a) Personal checks accepted by a slot machine licensee

under § 501.7 (relating to prohibition on check cashing) to

enable a person to take part in gaming must be:

(1) Drawn on a commercial bank, savings bank, saving

and loan association, or credit union and payable on demand.

(2) Drawn for a specific amount.

(3) Made payable to the slot machine licensee.

(4) Currently dated, but not post dated.

(b) Personal checks accepted under subsection (a) shall be

presented by the patron directly to a slot cashier who shall:

(1) Restrictively endorse the check "for deposit

only" to the bank account designated by the slot machine

licensee.

(2) Initial the check.

(3) Date and time stamp the check.

(4) Verify that the signature of the patron on the

personal check and the patron's physical appearance agree with

information recorded in a patron signature file created and

maintained by the slot machine licensee in accordance with

425

subsection (c) or with the signature and photograph or physical

description contained on a government-issued identification

credential presented by the patron. The slot machine licensee

shall retain adequate documentation evidencing the signature

verification performed in connection with the acceptance of each

personal check.

(5) For personal checks equaling or exceeding $500,

verify the validity of the check directly with the commercial

bank, savings bank, saving and loan association or credit union

upon which it is drawn or obtain an authorization and guarantee

of the check from a check verification and warranty service

certified as a vendor with the Board. The slot machine licensee

shall retain adequate documentation evidencing the check

verification performed in connection with the acceptance of each

personal check.

(6) Immediately exchange the personal check for cash

in an amount equal to the amount for which the check is drawn,

not to exceed $2,500 per patron per gaming day.

(c) To record a patron's signature in a patron signature

file, a slot cashier shall require the person for whom the file

is to be created to present for examination the following:

426

(1) If the identity of the patron is to be confirmed

in accordance with subsection (d)(1), one identification

credential.

(2) If the identity of the patron is to be confirmed

in accordance with subsection (d)(2), two identification

credentials, at least one of which must contain a photograph or

general physical description of the patron.

(d) Before a slot machine licensee may use a signature

recorded in a patron signature file to verify the identity of a

patron or the validity of a signature on a document, the slot

machine licensee shall confirm the identity of the patron by

either:

(1) Comparing the signature on the identification

credential presented by the patron under subsection (c)(1) with

the signature obtained from the patron and verifying the address

of the patron's residence with a credit bureau, commercial bank

or, if neither of these sources has the person's address on file

or will not provide the information, with an alternative source,

which does not include any documentation presented by the patron

at the cashiers' cage.

(2) Comparing the signature on each of the

identification credentials presented by the patron under

subsection (c)(2) with the signature obtained from the patron

427

and comparing the photograph or general physical description

contained on at least one of the identification credentials with

the patron's actual physical appearance.

(e) Any patron signature file established and maintained

by a slot machine licensee under subsection (c) must include, in

addition to the patron's signature, the following:

(1) The patron's name.

(2) The address of the patron's residence.

(3) The type of each identification credential

examined under subsection (d) and an indication whether the

identification credential contained a photograph or physical

description of the person.

(4) For the purposes of this section, a physical

description of the patron which includes:

(i) Date of birth.

(ii) Approximate height.

(iii) Approximate weight.

(iv) Hair color.

(v) Eye color.

(5) The date and time that the patron signature file

was established.

428

(6) The procedure by which the identity of the person

was confirmed under subsection (d), including:

(i) The source of confirmation, date and time if

confirmed under subsection (d)(1).

(ii) The date and time of confirmation if

confirmed under subsection (d)(2).

(7) The signature of the slot cashier or cashiers'

cage supervisor who examined the identification credentials of

the patron and established the patron signature file, which

signature evidences that:

(i) The signature of the patron recorded in the

patron signature file is consistent with the signature on each

identification credential that was examined.

(ii) The physical description recorded in the

patron signature file is consistent with both the actual

appearance of the person and any photograph or physical

description that may be contained on an identification

credential that was examined.

(f) Prior to accepting personal checks, each slot machine

licensee shall establish a comprehensive system of internal

controls applicable to the acceptance of personal checks. The



429

audit protocols). The internal controls submitted by the slot

machine licensee must address procedures for complying with this

section including the dollar limitation per gaming day contained

in subsection (b)(6).

§ 465.22. Wire transfers.

(a) A wire transfer accepted by a slot machine licensee on

behalf of a patron under § 501.7 (relating to prohibition on

check cashing) to enable a patron to take part in gaming must be

recorded in the slot machine licensee's cashiers' cage

accountability no later than the next gaming day.

(b) Prior to commencing acceptance of wire transfers for

gaming purposes, each slot machine licensee shall establish a

comprehensive system of internal controls addressing the

acceptance, verification, accounting for and sending of wire

transfers. The internal controls shall be submitted to and

approved by the Board under § 465.3 (relating to internal


(c) The internal control procedures developed and

implemented by the slot machine licensee under subsection (b)

must include:

(1) A cashiers' cage log to record the following

information with regard to wire transfers accepted:


430

(i) A sequential number assigned by the slot

machine licensee to the wire transfer transaction.

(ii) The date and time of notification.

(iii) The name of the financial institution and

account number to which the funds were transferred.

(iv) The amount of funds transferred.

(v) The name of the patron for whose benefit the

funds were transferred.

(vi) The name and address of the financial

institution from which the funds were transferred and the

account number from which the funds were debited.

(vii)The method by which the slot machine

licensee was notified of the receipt of the wire transfer and,

if noticed by telephone, the name and title of the person

providing notice.

(viii) The signature of the cashiers' cage

employee receiving and recording the information required by

this subsection.

(ix) When applicable, a notation that the wire

transfer has been reversed under subsection (d).

(2) A requirement that a cashiers' cage supervisor

other than the cashiers' cage employee who initially documented

431

receipt of the wire transfer verify receipt of the wire

transfer.

(3) A requirement that the cashiers' cage supervisor

verifying receipt of the wire transfer document the verification

process performed in the log required under subparagraph (c)(1)

including:

(i) The method by which the receipt of the wire

transfer was verified and, if verified by telephone, the name

and title of the person providing the verification.

(ii) The date and time of verification.

(iii) The signature of the cashiers' cage

supervisor verifying receipt of the wire transfer.

(4) The procedures pursuant to which the identity of

the patron is established, verified and documented, the wire

transfer proceeds made available to the patron at the cashiers'

cage and the cashiers' cage accountability adjusted.

(5) A cashiers' cage log to record the following

information with regard to wire transfers sent on behalf of a

patron:

(i) The name of the patron.

(ii) The date of the transaction.

(iii)The amount of funds transferred.

432

(iv) The source of funds transferred (cash, cash

equivalent, jackpot payout).

(v) The name and address of the financial

institution to which the funds will be transferred and the

account number to which the funds will be credited.

(vi) The signature of the patron if the request

to send a wire transfer is made in person at the cashiers' cage.

(vii) Documentation supporting the receipt of a

request by the slot machine licensee to send a wire transfer on

behalf of a patron if the request was not made in person at the

cashiers' cage.

(viii)The signature of the cashiers' cage

employee receiving and recording the information required by

this subsection.

(ix) The signature of the cashiers' cage

supervisor or accounting department supervisor authorizing the

wire transfer.

(6) When sending a wire transfer on behalf of a

patron, the procedures pursuant to which the identity of the

patron is verified and documented and the cashiers' cage

accountability adjusted.

433

(d) If, at the expiration of 14 gaming days following the

deposit into its operating account of a wire transfer which has

no documented business purpose other than having been accepted

to enable a patron to take part in gaming, the wired funds

remain in a slot machine licensee's operating account or

cashiers' cage accountability, the slot machine licensee shall,

on the next gaming day, take all steps necessary to return to

the patron by wire transfer the amount initially accepted. The

wire transfer shall be sent to the financial institution and to

the account number from which the funds were debited. This

reversal of the wire transfer shall be recorded in the wire

transfer log maintained under subsection (c)(1).

§ 465.23. Cash equivalents.

(a) Cash equivalents such as recognized traveler's checks,

cashiers' checks and money orders may be accepted by a slot

machine licensee under § 501.7 (relating to prohibition on check

cashing) to enable a person to take part in gaming.

(b) Prior to commencing acceptance of cash equivalents for

gaming purposes, each slot machine licensee shall establish a

comprehensive system of internal controls addressing the

acceptance and verification of cash equivalents. The internal

controls shall be submitted to and approved by the Board under §

465.3 (relating to internal control systems and audit

protocols).

434



must include:

(1) A requirement that cashiers' cage employees

perform the specific verification procedures required by the

issuer of each cash equivalent accepted. The slot machine

licensee shall retain adequate documentation evidencing the

verification of each cash equivalent.

(2) A requirement that cashiers' cage employees

examine each cash equivalent for counterfeiting, forgery or

alteration.

(3) When a slot machine licensee elects to

incorporate into its verification procedures a level of reliance

on previously accepted cash equivalents, the procedures must

articulate the general parameters governing such reliance.

(4) Criteria for cashiers' cage supervisor involvement

in the verification process.

(5) Procedures for verifying any patron signature on

the cash equivalent. Signature verification must be

accomplished in accordance with the signature verification

procedures in § 465.21 (relating to personal checks). The slot

machine licensee shall retain adequate documentation evidencing

each signature verification.

435

§ 465.24. Customer deposits.

(a) At the request of a patron, a slot machine licensee

may hold cash, funds accepted via wire transfer in accordance

with § 465.22 (relating to wire transfers) or cash equivalents

accepted in accordance with § 465.23 (relating to cash

equivalents) for a patron's subsequent use for gaming purposes.

For the purposes of this section, after complying with this

subpart for acceptance and verification, non-cash items shall be

considered converted to cash and deposited as cash for credit to

the patron in a customer deposit account maintained in the

cashiers' cage.

(b) Prior to agreeing to hold a patron's cash, funds

accepted via wire transfer in accordance with § 465.22 or cash

equivalents accepted in accordance with § 465.23 for a patron's

subsequent use for gaming purposes, each slot machine licensee

shall establish a comprehensive system of internal controls

addressing the receipt and withdrawal of a customer deposit.

The internal controls shall be submitted to and approved by the


audit protocols).



must include:

436

(1) A requirement that customer deposits be accepted

at the cashiers' cage.

(2) A requirement that customer deposits be withdrawn

by the patron at the cashiers' cage or upon receipt by the slot

machine licensee of a written request for withdrawal whose

validity has been established.

(3) A requirement that the patron receive a receipt

for any customer deposit accepted reflecting the total amount

deposited, the date of the deposit and the signature of the

cashiers' cage employee accepting the customer deposit.

(4) Procedures for verifying the identity of the

patron at the time of withdrawal. Signature verification must

be accomplished in accordance with the signature verification

procedures under § 465.21 (relating to personal checks). The

slot machine licensee shall retain adequate documentation

evidencing the patron identification process and signature

verification.

§ 465.25. Count room characteristics.

(a) Each slot machine licensee shall have adjacent or

reasonably proximate to the cashiers' cage a room, to be known

as a count room, specifically designated, designed and used for

counting the contents of slot cash storage boxes.

437

(b) The count room shall be designed and constructed to

provide maximum security for the materials housed therein and

for the activities conducted therein. Each slot machine

licensee shall design and construct a count room with the

following security measures:

(1) A metal door installed on each entrance and exit

equipped with an alarm device which audibly signals the

surveillance department monitoring room and the security

department whenever a door to the count room is opened at times

other than those times for which the slot machine licensee has

provided prior notice under § 465.25 (relating to counting of

slot cash storage boxes).

(2) Each entrance and exit door must be equipped with

two separate locks, the keys to which must be different from

each other and different from the lock securing the contents of

each slot cash storage box. The key to one of the locks shall

be maintained and controlled by the security department and the

key to the other lock shall be maintained and controlled by

finance. Sign-out and sign-in procedures must be established

for both keys.

(c) Located within the count room must be:

438

(1) A table constructed of clear glass or similar

material for the emptying, counting, and recording of the

contents of slot cash storage boxes.

(2) Surveillance cameras capable of the following:

(i) Effective video monitoring of the entire

count process.

(ii) Effective video monitoring of the interior

of the count room, including any storage cabinets or trolleys

used to store slot cash storage boxes and any Board-approved

trolley storage area located adjacent to the count room.

§ 465.26. Counting and recording of slot cash storage boxes.

(a) Each slot machine licensee shall place on file with

the Board, in the manner prescribed by the Board, a schedule

setting forth the specific times during which the contents of

slot cash storage boxes are to be counted and recorded. Any

deviation from the schedule shall be noticed to the Board in

advance in a manner prescribed by the Board.

(b) Computerized equipment utilized to count and strap

currency, gaming vouchers and coupons must:


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(1) Automatically provide two separate counts of the

funds at different stages of the count process and, if the

separate counts are not in agreement, document the discrepancy.

(2) Be capable of determining the value of a gaming

voucher or coupon by independently examining information printed

on the gaming voucher or coupon. The information is used by the

counting equipment to either calculate the value internally or

obtain the value directly from the gaming voucher system or

coupon system in a secure manner as approved by the Board. If

the gaming voucher system is utilized to obtain the value of a

gaming voucher or coupon, the gaming voucher system must perform

a calculation or integrity check to ensure that the value has

not been altered in the system in any manner since the time of

issuance.

(c) Persons accessing the count room when uncounted funds

are present shall wear clothing without any pockets or other

compartments with the exception of representatives of the Board,

the Department, the Pennsylvania State Police, the security

department and the internal audit department.

(d) Persons present in the count room may not:

(1) Carry a handbag or other container unless it is

transparent.

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(2) Remove their hands from or return them to a

position on or above the count table or counting equipment

unless the backs and palms of the hands are first held straight

out and exposed to the view of other members of the count team

and a surveillance camera.

(e) Immediately prior to the commencement of the count, a

count room employee shall notify the surveillance department

that the count is about to begin to facilitate the recording,

under § 465.10(e) (relating to surveillance system; surveillance

department control; surveillance department restrictions), of

the entire count process.

(f) Prior to commencing gaming operations, each slot


internal controls addressing the opening, counting and recording

of the contents of slot cash storage boxes. The internal

controls shall be submitted to and approved by the Board

pursuant to § 465.3 (relating to internal control systems and

audit protocols).

(g) The internal controls developed and implemented by the

slot machine licensee under subsection (f) must include a

description of all computer equipment used in the counting and

recording process and other systems, if any, that communicate

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with that computer equipment for purposes related to the

counting of gross terminal revenue.

(h) Any gaming voucher or coupon deposited in a slot cash

storage box shall be counted and included in the calculation of

gross terminal revenue without regard to the validity of the

gaming voucher or coupon.

(i) Any coupon which has not already been canceled upon

acceptance or during the count shall be canceled prior to the

conclusion of the count, in a manner approved by the Board.

(j) Any variance between the value of cash gaming vouchers

and coupons in a slot cash storage box as determined in the

count room and the value for that particular slot cash storage

box recorded on corresponding reports generated by the gaming

voucher system or coupon system shall be disclosed to the Board

in a detailed written report citing each variance, the reason

for the variance and the corrective action taken. This variance

report shall be filed by the slot machine licensee with the

Board within 72 hours of the count that is the subject of the

comparison and shall be filed in the manner prescribed by the

Board.

§ 465.27. Jackpot payouts.

(a) Prior to commencing gaming operations, each slot


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internal controls addressing jackpot payouts that are not paid

directly from a slot machine. The internal controls shall be

submitted to and approved by the Board under § 465.3 (relating


(b) The internal control procedures developed and

implemented by the slot machine licensee under subsection (a)

must include:

(1) A request for jackpot payout document or, in the

alternative, an electronic entry into a slot computer system

generating jackpot payouts, by a slot attendant or slot

supervisor, evidencing the observation by the slot attendant or

slot supervisor of the winning combination of characters on the

slot machine and a determination as to the appropriate amount of

the jackpot payout based on the observed winning combinations.

(2) A requirement that the preparer of the request

for jackpot payout document or, in the alternative, the employee

performing the electronic entry into the slot computer system,

be a slot supervisor if the hand paid jackpot is $10,000 or

more.

(3) A requirement that the following information be

on the request for jackpot payout document or electronically

entered into the slot computer system and maintained in stored

data:

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(i) The date and time of the jackpot.

(ii) The asset number of the slot machine on

which the jackpot was registered.

(iii) The winning combination of characters

constituting the jackpot or a code corresponding to the winning

combination of characters constituting the jackpot.

(iv) The amount of the jackpot payout.

(v) The method of payment requested by the

patron (that is, cash, slot licensee check).

(vi) The signature or identification code of the

preparer.

(vii)The following additional signatures or

identification codes shall be required if the slot machine or

the progressive meter is reset prior to the patron being paid or

if payment is made directly to the patron by a slot cashier:

(A) The signature or identification code of

a security department member or slot attendant other than the

preparer attesting to the winning combination of characters

constituting the jackpot and the amount of the jackpot payout.

(B) The signature or identification code of

the slot shift manager attesting to the winning combination of

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characters constituting the jackpot and the amount of the

jackpot payout when the jackpot amount is $25,000 or more.

(4) A requirement that following preparation the

request for jackpot payout document be immediately transported

by the preparer, or the information made available by the slot

computer system, to the cashiers' cage where it will serve to

authorize the preparation of a jackpot payout document.

(5) A requirement that if the winning patron will not

be paid before the slot machine or progressive meter is reset,

the preparer of the request for jackpot payout document or the

employee performing the electronic entry required by paragraph

(1) shall also prepare a two part receipt document containing

the following information:

(i) The date and time of the jackpot.

(ii) The asset number of the slot machine on


(iii) The winning combination of characters



(iv) The amount of the jackpot payout.

(v) The signature of the winning patron on the

original form only.

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(vi) The signature of the preparer attesting that

the information on the receipt document is correct and agrees

with the information on the request for jackpot payout document

or in stored data.

(6) A requirement that the receipt document be

distributed as follows:

(i) The original shall be immediately delivered

to the slot cashier by the preparer, security department member

or verifying slot attendant along with the request for jackpot

payout document if manually generated in accordance with

paragraph (1).

(ii) The duplicate shall be immediately presented

to the winning patron who shall be required to present the

duplicate receipt document before being paid the jackpot in

accordance with the procedures set forth in this section.

(7) A requirement that the information in

subparagraphs (i) – (vi) be on any jackpot payout document

generated by the slot computer system. The data may not be

susceptible to change or removal by any personnel after

preparation of a jackpot payout document:

(i) The asset number of the slot machine on


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(ii) The winning combination of characters



(iii) The date on which the jackpot occurred.

(iv) The amount that is to be paid from cashiers'

cage funds. However, this amount may, in the slot machine

licensee's discretion, be rounded up to the nearest whole

dollar.

(v) The date, time and method of payment (that

is, cash, slot licensee check).

(vi) The signature or identification code of the

preparer.

(8) A requirement that whenever the winning patron is

paid directly by the slot cashier the following procedures be

followed:

(i) A jackpot payout document be generated by

the slot computer system in accordance with paragraph (7).

(ii) If a one-part request for jackpot payout

document is involved and a security department member or

verifying slot attendant other than the preparer has not signed

the one-part request for jackpot payout document, the slot

cashier shall summon a security department member or slot

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attendant other than the preparer of the request for jackpot

payout document and provide that employee with the request for

jackpot payout document. The security department member or

verifying slot attendant shall proceed to the slot machine

identified on the request for jackpot payout document and sign

the request for jackpot payout document attesting that the

winning combination of characters on the slot machine and the

amount to be paid match those which appear on the request for

jackpot payout document. If the jackpot amount is $25,000 or

more, a slot shift manager shall similarly sign the request for

jackpot payout document attesting that the winning combination

of characters on the slot machine and the amount to be paid

match those which appear on the request for jackpot payout

document. The request for jackpot payout document shall then be

immediately returned to the slot cashier.

(iii) After the slot cashier determines that the

required signatures verifying the winning combination of

characters on the slot machine and the amount to be paid have

been placed on the one part request for jackpot payout document,

if the amount being paid is less than $10,000, the slot cashier

shall pay the winning patron in the presence of the preparer of

the request for jackpot payout document. If the amount being

paid is $10,000 or more but less than $25,000, the slot cashier

shall pay the winning patron in the presence of the slot

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attendant supervisor who prepared the request for jackpot payout

document. If the amount being paid by the cashier is $25,000 or

more, the slot cashier shall pay the winning patron in the

presence of the slot attendant supervisor and slot shift manager

who prepared the request for jackpot payout document in

accordance with this subsection. Personnel required by this

subsection to witness the payment shall sign the duplicate

jackpot payout document attesting to the accuracy of the

information on the duplicate jackpot payout document and the

disbursement of the payment to the patron.

(iv) If a receipt document under paragraph (5)

was issued, the duplicate receipt document shall be signed by

the patron in the presence of the slot cashier. The slot

cashier shall compare the signature on the duplicate receipt

document to that on the original receipt document and make the

payment only if the signatures are in agreement.

(v) Once payment has been made and all required

signatures obtained, the slot cashier shall give the duplicate

jackpot payout document to a security department member or slot

attendant who shall expeditiously deposit it into a locked

accounting box.

(vi) The slot cashier shall attach the request

for jackpot payout document, if applicable, the original and

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duplicate receipt document, if applicable, to the original copy

of the jackpot payout document. All documents shall be

forwarded by the end of the gaming day to the main bank for

reimbursement.

(9) A requirement that whenever a winning patron is

paid by a slot attendant or slot attendant supervisor, the

following procedures be followed:

(i) A jackpot payout document be generated by

the slot computer system in accordance with paragraph (7).

(ii) The slot cashier shall disburse the cash or

slot licensee check to a slot attendant or slot attendant

supervisor if the amount of the jackpot is less than $10,000 and

to a slot attendant supervisor if the amount of the jackpot is

$10,000 or more. The employee receiving the payment shall verify

the amount received and sign the original and duplicate of the

jackpot payout document attesting to the accuracy of the

information on the jackpot payout document and the receipt of

the payment from the slot cashier. The slot cashier shall

retain the original jackpot payout document and the duplicate

jackpot payout document shall be transported with the payment to

the slot machine.

(iii)If a one-part request for jackpot payout

document is involved and a security department member or

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verifying slot attendant other than the preparer has not signed

the one-part request for jackpot payout document, the slot

attendant or slot attendant supervisor shall provide the

duplicate jackpot payout document to the security department

member or verifying slot attendant other than the preparer at

the slot machine who shall verify that the winning combination

of characters on the slot machine and the amount to be paid

match those which appear on the duplicate jackpot payout

document. If the jackpot amount is $25,000 or more, and the

slot shift manager has not signed the request document, the slot

shift manager shall similarly verify that the winning

combination of characters on the slot machine and the amount to

be paid match those which appear on the duplicate jackpot payout

document.

(iv) Once the verifications required by

subparagraph (iii) have been completed, if the payment is less

than $10,000, the slot attendant or slot attendant supervisor

shall pay the winning patron in the presence of the security

department member or second slot attendant who verified the

winning combination of characters on the slot machine and the

amount to be paid. If the payment is $10,000 or more, but less

than $25,000, the payment shall be made by a slot attendant

supervisor in the presence of the security department member or

verifying slot attendant who verified the winning combination of

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characters on the slot machine and the amount to be paid. If

the payment is $25,000 or more, the payment shall be made by a

slot attendant supervisor in the presence of the security

department member or verifying slot attendant and the slot shift

manager who verified the winning combination of characters on

the slot machine and the amount to be paid. Once the patron has

been paid, all personnel required by subparagraph (iii) to

witness the payment shall sign the duplicate jackpot payout

document attesting that the winning combination of characters on

the slot machine and the amount to be paid match those which

appear on the duplicate jackpot payout document and the

disbursement of the payment to the winning patron.

(v) If a receipt document under paragraph (5)

was issued, the slot cashier must give the slot attendant or

slot attendant supervisor the original receipt document along

with the duplicate jackpot payout document to be transported

with the payment. The patron shall be required to sign the

duplicate receipt document in the presence of the slot attendant

or slot attendant supervisor. The slot attendant or supervisor

shall compare the signature on the duplicate receipt document to

that on the original receipt document and shall make the payment

only if the signatures are in agreement.

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(vi) Once payment has been made and the required

signatures obtained, the security department member or slot

attendant shall expeditiously deposit the duplicate jackpot

payout document into a locked accounting box.

(vii) The slot attendant or slot attendant

supervisor shall immediately return the original and duplicate

receipt document, if applicable, to the cashiers' cage.

(viii) The slot cashier shall attach the request

for jackpot payout document, if applicable, the original and

duplicate receipt document, if applicable, to the original copy

of the jackpot payout document. All documents shall be

forwarded by the end of the gaming day to the main bank for

reimbursement.

(10) A requirement that the slot machine licensee's

accounting department perform, at the conclusion of each gaming

day, effective income control audit procedures over the issuance

of jackpot payouts including adequate comparisons to gaming

voucher system data.

(11) Details with regard to processing of system

overrides or adjustments.

(c) Nothing in this section precludes the use of a slot

computer system, as approved by the Board, that electronically

records the information required on a request for jackpot payout

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document or facilitates through the slot computer system the

verifications and comparisons as to winning combination of

characters on the slot machine or amount to be paid required

under this section.

(d) Nothing in this section precludes a slot machine

licensee from implementing procedures pursuant to which a slot

attendant, in the presence of a member of the security

department, utilizes an imprest inventory of funds secured in a

pouch or wallet to pay a jackpot of less than $1,200 that is not

totally and automatically paid directly from a slot machine.

(e) Prior to the payment of a jackpot payout under

subsection (d), each slot machine licensee shall establish a

comprehensive system of internal controls addressing this method

of jackpot payout, the replenishment of the imprest pouch and

the attendant reconciliation process. The internal controls

shall be submitted to and approved by the Board under § 465.3


§ 465.28. Annuity jackpots.




Annuity jackpot - A slot machine jackpot pursuant to which

a patron wins the right to receive fixed cash payments at

specified intervals in the future.

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(b) Annuity jackpots. A slot machine licensee offering an

annuity jackpot payable over 10 years or more may offer a

winning patron the option to be paid in a single cash payout, in

lieu of the annuity jackpot, in an amount that is equal to the

present value of the face amount of the jackpot payout as

calculated in subsection (c).

(c) Cash payment option. The present value of the cash

payout option on an annuity shall be determined by applying a

discount rate to each of the future annuity jackpot payments,

taking into consideration the number of years until each jackpot

payment would otherwise have been received and adding to that

amount the amount of the first cash payment that would otherwise

have been received. For the purposes of this subsection, the

discount rate must equal the United States Treasury constant

maturity rate for 20 year United States government securities

for the week ending prior to the date of the jackpot, as

identified in the applicable H.15 Statistical Release issued by

the Federal Reserve Board plus 0.5%.

(d) Restriction on annuity payout. A slot machine

licensee may not offer an annuity jackpot payout unless:

(1) The terms and conditions of the annuity jackpot,

including the effect on the calculation of the theoretical

payout percentage, comply with the act, this subpart and

technical standards on jackpot payouts approved by the Board.

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(2) The Board has approved the specific offer of the

annuity jackpot.

(e) Cash payout with an annuity jackpot. A cash payout

made in connection with an annuity jackpot must be made in

accordance with § 465.27 (relating to jackpot payouts).

(f) Internal controls. Prior to the payment of an annuity

jackpot, each slot machine licensee shall establish a

comprehensive system of internal controls addressing the payment

of an annuity jackpot. The internal controls shall be submitted

to and approved by the Board under § 465.3 (relating to internal


(1) The internal control procedures developed and

implemented by the slot machine licensee must include:

(i) Procedures to be followed by a winning

patron to exercise a cash payout option.

(ii) Procedures with regard to the administration

of the trust agreement established to insure the future cash

payments due pursuant to the annuity jackpot award.

(iii) A requirement that the trustee for the

trust fund established by the trust agreement be a slot machine

licensee or, for a wide area progressive system offering an

annuity jackpot, the slot system operator for that wide area

progressive system.

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(2) A slot machine licensee may not offer an annuity

jackpot until its supporting trust agreement and the internal

controls required under this section have been approved in

writing by the Board.

§ 465.29. Merchandise jackpots.




Merchandise jackpot - A slot machine jackpot in the form

of:

(i) Merchandise or a thing of value.

(ii) A cash payout and a payout of merchandise or a

thing of value.

(iii) An option to choose between a cash payout and a

payout of merchandise or a thing of value.

(b) Restriction. A slot machine licensee may not offer a

merchandise jackpot payout unless:

(1) The terms and conditions of the merchandise

jackpot, including the effect on the calculation of the

theoretical payout percentage, comply with the act, this subpart

and technical standards on jackpot payouts approved by the

Board.

(2) The Board has approved the specific offer of the

merchandise jackpot.

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(c) Cash payout. Any cash payout made in connection with

a merchandise jackpot must be made in accordance with § 465.27

(relating to jackpot payouts).

(d) Internal controls. Prior to the payment of a

merchandise jackpot, each slot machine licensee shall establish

a comprehensive system of internal controls addressing the

payment of a merchandise jackpot. The internal controls shall

be submitted to and approved by the Board under § 465.3


§ 465.30. Automated teller machines.

Automated teller machines may be placed at any location

within the licensed facility.

§ 465.31. Waiver of requirements.

The Board may waive one or more of the requirements of this

chapter or technical standards applicable to accounting and

internal controls adopted by the Board upon a determination that

the nonconforming control or procedure nonetheless meets the

operationally integrity requirements of the act, this subpart


CHAPTER 466. SLOT COMPUTER SYSTEMS

§ 466.1. Slot computer systems generally.

(a) All aspects of a slot machine licensee’s slot computer

system shall be located within the licensed facility unless

458

otherwise approved by the Board in accordance with technical

standards adopted by the Board.

(b) For the purposes of this section, a slot computer

system must include all aspects of a computer system which the

act, this subpart or technical standards adopted by the Board

either require or permit to be utilized by a slot machine

licensee in the conduct of, or monitoring of, slot machine

operations including hardware, software and network interfaces

used in connection with the operation of a slot monitoring

system, casino management system, player tracking system,

external bonusing system, cashless funds transfer system and

gaming voucher system. However, a slot computer system will not

be construed to include the following:

(1) A slot machine or bill validator.

(2) A wide area progressive slot system.

(3) Other computer systems or applications that the

Board determines are not slot computer systems.

(c) The Board may waive one or more of the requirements of

this section or technical standards applicable to slot computer

systems adopted by the Board upon a determination that the

nonconforming system protocols nonetheless meet the integrity



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CHAPTER 467. COMMENCEMENT OF SLOT OPERATIONS

§ 467.1. Gaming floor plan.

(a) Each applicant for, or holder of a slot machine

license, shall submit to the Board, in a manner the Board

requires, a floor plan of its gaming floor and the restricted

areas servicing the slot operation. Each floor plan shall be

drawn to 1/8 inch scale or other scale approved by the Board,

shall be certified by an architect licensed to practice in this

Commonwealth and depict the following:

(1) The gaming floor with notations as to:

(i) Proposed total square footage.

(ii) The perimeter of the gaming floor.

(iii) A clearly delineated route for underage

persons to transverse the gaming floor.

(2) Each slot machine area on the gaming floor and

each slot machine location within each slot machine area. Slot

machine locations shall be identified by number in accordance

with § 463.3 (relating to slot machine location).

(3) The number of slot machines on the gaming floor,

in total and by slot area. The number must be in compliance

with section § 1210 of the act (relating to number of slot

machines).

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(4) Each slot seat on the gaming floor in compliance

with § 461.7(t) (relating to slot machine minimum design

standards).

(5) Each surveillance camera installed in compliance

with § 465.10(a) (relating to surveillance system; surveillance

department control, surveillance department restrictions),

noting its type and camera number.

(6) The cashiers' cage and any satellite cashiers'

cage, inclusive of each cashiers' cage window and window number,

ancillary offices and areas.

(7) Each count room and any trolley storage area.

(8) Each automated bill breaker, gaming voucher

redemption, coupon redemption and jackpot payout machine.

(9) Each automated teller machine.

(10) Each area designated for the storage or repair of

slot machines.

(11) Vault and armored car bay locations.

(12) Additional documentation as requested by the

Board.

(b) A slot machine licensee may not commence slot

operations until the floor plan depicting its gaming floor and

all restricted areas servicing the slot operation has been

approved in writing by the Board. The approval by the Board

will expressly authorize the maximum square footage of gaming

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floor and maximum number of slot machines which may be operated

by the slot machine licensee.

(c) A slot machine licensee may not change or revise the

square footage of its gaming floor or the number of slot

machines on the floor plan approved under subsection (b) without

prior written approval of the Board.

§ 467.2. Commencement of slot operations generally.

(a) In addition to obtaining a slot machine license, prior

to the commencement of slot operations at a licensed facility

each slot machine licensee shall demonstrate that:

(1) The licensed facility, including the gaming floor

and restricted areas servicing the slot operation, complies in

all respects with the act, this subpart and technical standards


(2) Slot machines and associated equipment installed

in the licensed facility and utilized in the conduct of slot

machine operations have been tested and approved by the Board in

compliance with the act, this subpart and technical standards


(3) The gaming floor plan required under § 467.1(a)

(relating to gaming floor plan) has been approved by the Board

in compliance with the act, this subpart and technical standards


462

(4) The slot machine licensee's proposed site plan

and internal control systems and audit protocols have been

approved by the Board in compliance with the act, this subpart


(5) The slot machine licensee is prepared to

implement necessary management controls, surveillance and

security precautions to insure the efficient conduct of slot

operations.

(6) The slot machine licensee's employees are licensed

and trained in the performance of their responsibilities.

(7) The slot machine licensee has complied with any

conditions prerequisite to commencement of slot operations

contained in the Statement of Conditions executed under § 423.3

(relating to license issuance and statement of conditions).

(8) The licensed facility is prepared in all respects

to receive the public.

(9) The slot machine licensee has successfully

completed a test period in accordance with the terms and

conditions required by the Board.

(b) Upon a slot machine licensee's successful

demonstration of the criteria enumerated in subsection (a), the

Board may authorize the date and time at which the slot machine

licensee may commence slot operations at the licensed facility

and will fix the maximum square footage of gaming floor and

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maximum number of slot machines which may be operated by the

slot machine licensee pursuant to that authorization.

Subpart F. FEES


CHAPTER 471a. FILING FEES

§ 471a.1. Fees generally.

(a) A pleading or other document for which a filing fee is required will be received, but

will not be deemed filed, until the filing fee, bond, letter of credit or other cost has been paid.

(b) The fees collected by the Board will be deposited into the State Gaming Fund as

established in section 1403 of the act (relating to establishment of State Gaming Fund and net

slot machine revenue distribution).

(c) Fees shall be paid by money order or check made payable to the ''Commonwealth of

Pennsylvania.'' Cash will not be accepted by the Board.

(d) To recover the initial cost of the investigation and processing of applications, each

application for a license, permit, certification or registration must be accompanied by a

nonrefundable fee.

(e) An applicant may be subject to additional fees based on the actual expenses incurred

by the Board in conducting the background investigation.

§ 471a.2. Schedules of fees.

Fee schedules established by the Board and changes thereto will be published in the

Pennsylvania Bulletin and will be available on the Board's website (www.pgcb. state.pa.us).

§ 471a.3. Adjustment of fees.

On or after July 5, 2006, and annually thereafter, the Board may increase the fees,

charges, costs or administrative penalties specified in the act by an amount not to exceed an

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annual cost-of-living adjustment calculated under section 1208(2) of the act (relating to

collection of fees and fines).

Subpart G. MINORITY AND WOMEN’S BUSINESS ENTERPRISES


CHAPTER 481a. DIVERSITY

§ 481a.1. Statement of purpose, policy and applicability.

(a) This chapter establishes the procedures for promoting and ensuring that regulated

entities foster participation and diversity in all aspects of their operations in this Commonwealth.

(b) It is the policy of the Board to promote and ensure that regulated entities conduct all

aspects of their operations in a manner that assures diversity of opportunity as follows:

(1) In the ownership, participation and operation of regulated entities in this

Commonwealth.

(2) Through the ownership, participation and operation of business enterprises

associated with or utilized by regulated entities.

(3) Through the provision of goods and services utilized by regulated entities.

(c) It is further the policy of the Board to promote and ensure diversity in employment

and contracting by each regulated entity and its contractors, subcontractors, assignees, lessees

and agents.


The following words and terms, when used in this chapter, have the following meanings,


Diversity plan--A plan that promotes and ensures diversity in ownership, participation

and operation of regulated entities; and in employment and contracting by regulated entities.

465

Minority--The ethnic/racial categories identified in employer survey reports that are

required by the United States Equal Opportunity Commission and the Office of Federal Contract

Compliance Programs of the United States Department of Labor under section 709 of the Civil

Rights Act of 1964 (42 U.S.C.A. § 2000(e)-8) or by subsequent amendments to that Federal act.

Participation plan--An obligation imposed by a regulated entity as part of its contract

with a contractor that requires the contractor to utilize minority or women owned business

enterprises.

Regulated entity--An applicant for or holder of the following:

(i) Slot machine license.

(ii) Manufacturer license.

(iii) Supplier license.

(iv) Vendor certification.

(v) Junket license.

(vi) Management company license.

§ 481a.3. Diversity participation.

(a) The list of the minority and women's business enterprises that are certified by the

Bureau of Minority and Women's Business Enterprises of the Department of General Services

under 62 Pa.C.S. Part I (relating to Commonwealth Procurement Code) may be used by a

regulated entity to establish the eligibility of an enterprise as a minority or women's business

enterprise for the purpose of promoting and ensuring minority and women's business

participation.

(b) It shall be the responsibility of the regulated entity to verify that a minority or

women's business enterprise that is not certified by the Bureau of Minority and Women's

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Business Enterprises of the Department of General Services is a minority or women's business

enterprise.

§ 481a.4. Establishment of diversity plan required.

(a) Each regulated entity shall include in its application for licensure or certification a

diversity plan that establishes a separate goal of diversity in the ownership, participation and

operation of, and employment at the regulated entity. The Board will determine whether the

stated goals set forth in each diversity plan are reasonable and represent a good faith effort to

assure that all persons are accorded equality of opportunity in contracting and employment by

the regulated entity and its contractors, subcontractors, assignees, lessees and agents.

(b) A regulated entity may demonstrate achievement of its diversity goals through one or

both of the following:

(1) Contracting or transacting directly with minority and women's business

enterprises.

(2) Contracting with a nonminority business enterprise under terms and

conditions that establish a participation plan.

§ 481a.5. Report of participation.

(a) As part of an application to renew a license or certification, a regulated entity shall

file a report with the Board concerning the performance of its diversity plan. The report must

contain the following:

(1) Employment data, including information on the following:

(i) Minority and women representation in the regulated entity's workforce

in all job classifications.

(ii) Salary information.

467

(iii) Recruitment and training information, including executive and

managerial level recruitment and training.

(iv) Retention and outreach efforts.

(2) The total number and value of all contracts or transactions awarded by the

regulated entity for goods and services.

(3) The total number and value of all contracts or transactions awarded by the

regulated entity to minority and women's business enterprises.

(4) A list of each contract or transaction awarded by the regulated entity to a

minority or women's business enterprise and the actual value of each contract or transaction.

(5) The total number and value of all contracts awarded that contain a

participation plan.

(6) The total number and value of all subcontracts awarded to minority and

women's business enterprises under contracts containing a participation plan.

(7) A list of each subcontract awarded to a minority or women's business

enterprise under contracts containing a participation plan and the actual value of each

subcontract.

(8) A comprehensive description of all efforts made by the regulated entity to

monitor and enforce the participation plan.

(9) Information on minority and women investment, equity ownership, and other

ownership or management opportunities initiated or promoted by the regulated entity.

(10) Other information requested in writing by the Board to ensure compliance

with the act and this part.

468

(b) In addition to the reports required under subsection (a), slot machine licensees,

manufacturer licensees and supplier licensees shall file updated versions of the reports required

under subsection (a) quarterly.

(c) A licensed management company may file a consolidated report with the slot

machine licensee with whom the management company has a management contract.

(d) A regulated entity may request that proprietary information required to be submitted

to the Board under this section be treated as confidential information. A regulated entity shall

clearly mark information that it requests to be treated as confidential information.

(e) The Board will use the reports required under subsections (a), (b) and (c) to monitor

compliance with the act and this part. The Board may request the assistance of the Bureau of

Minority and Women's Business Enterprises, of the Department of General Services, in the

review of regulated entities' compliance with the requirements of the act and this part.

§ 481a.6. Diversity audits.

(a) Onsite audits may be performed on an annual basis or at the discretion of the Board

to ensure compliance with this chapter.

(b) Advanced written notice will be provided to a regulated entity prior to the conduct of

an onsite audit by the Board.

Subpart H. PRACTICE AND PROCEDURE

CHAPTER 491. GENERAL RULES OF PRACTICE

§ 491.1. Office of the Clerk.

(a) The Board will have within its organization an Office

of the Clerk whose duties will be as follows:

(1) Provide information as to practice and procedure

before the Board, under this subpart.

469

(2) Receive and docket applications and pleadings and

other documents filed with the Board. Receipt and transmission

of the information may be by electronic means, only under a

policy established by the Board.

(b) All filings and requests for practice and procedure

information should be directed to:

Office of the Clerk

Pennsylvania Gaming Control Board

P.O. Box 69060

Harrisburg, PA 17106-9060

(c) The Clerk will maintain a docket of all proceedings,

and each proceeding as initiated will be assigned an appropriate

designation. The docket will be available for inspection and

copying by the public during the Board’s office hours.

§ 491.2. Filing generally.

(a) Pleadings and other documents filed with the Board

should clearly designate the docket number or similar

identifying symbols, if any, employed by the Board, and should

set forth a short title. The identity of the individual making

the submission, including name, mailing address, and status (for

example, party, attorney for a party, and the like) shall appear

on the document.

470

(b) Pleadings, including documents filed under this

chapter, must also comply with Chapter 495 (relating to

documentary filings).

(c) If the Board is of the opinion that a pleading

tendered for filing does not comply with this subpart or, if it

is an application or similar document, does not sufficiently set

forth required material or is otherwise insufficient, the Board

may decline to accept it for filing and may return it without

filing, or the Board may accept it for filing and advise the

person tendering it of the deficiency and require that the

deficiency be corrected.

(d) The Board may order redundant, immaterial, obscene or

otherwise inappropriate comments stricken from documents filed

with it.

§ 491.3. Service by the Board.

(a) Service by the Board may be made by any competent

adult. Service will be made by certified mail or personally

delivering a copy:

(1) Directly to the person named in the notice,

pleading, or order.

(2) At the residence of the person named in the

notice, pleading, or order, to an adult member of the family

with whom the person named resides. If no adult member of the

471

family is found, then to an adult person in charge of the

residence.

(3) At the residence of the person named in the

notice, pleading, or order, to the clerk or manager of the

hotel, inn, apartment house, boarding house or other place of

lodging at which the person named resides.

(4) At any office or usual place of business of the

person named in the notice, pleading, or order, to his agent or

to the person for the time being is in charge thereof. For

purposes of this subsection, the phrase “any office or usual

place of business of the person named in the notice, pleading,

or order” will include the following locations:

(i) The licensed facility at which the person

named is employed, licensed in connection therewith, or

routinely performs his duties of employment.

(ii) The office of the agent identified by the

person named to receive service of process.

(b) Proof of service shall be evidenced by a return of

service filed with the Office of the Clerk in the manner and

form prescribed by the Board.

CHAPTER 492. HEARINGS AND APPEALS

§ 492.1. Generally.

This subpart governs practice and procedure before the

Board, and is intended to supplement 2 Pa.C.S. § 101, et seq.

472

(relating to administrative law and procedure), and 1 Pa. Code,

Part II (relating to General Rules of Administrative Practice

and Procedure).


The following words and terms, when used in this subpart,



Adjudication – An order, decree, decision, determination or

ruling by the Board affecting the personal or property rights,

privileges, immunities, duties, liabilities or obligations of

the parties to the proceeding in which the adjudication is made.

Consent Agreement – A voluntary agreement to an act or

proposal based on specific terms which are entered into by all

parties to a proceeding to resolve a disputed matter as may be


Director, Office of Hearings and Appeals – An employee of

the Board designated to manage and supervise the Office of

Hearings and Appeals, who shall report to the Executive

Director.

Documentary Evidence – Any document or paper which is

presented and accepted as evidence in a proceeding, as

distinguished from oral evidence.

473

Documentary Hearing – A proceeding limited to a review of

documentary evidence submitted by the parties, including

documents, depositions, affidavits, interrogatories, and

transcripts.

Exceptions – A formal objection to a report or

recommendation of a presiding officer.

Hearing – A proceeding, documentary or oral, initiated by

the filing of a complaint, answer, petition, motion, exceptions

or by order of the Board.

Hearing Officer – An employee of the Board designated to

conduct a hearing relating to a license, permit, registration or

certification applied for, approved or issued by the Board; any

other authorization or permission granted by the Board, or a

violation of the act or of this part, or any other matter within

the jurisdiction of the board.

Interveners – Persons intervening or petitioning to

intervene, when admitted by the Board as a participant to a

proceeding.

OHA - Office of Hearings and Appeals - A division of the

Board charged with administrating and conducting hearings

relating to licensing, violations of the act, this part or other

matters as the Board may direct.

474

Oral Hearing – A proceeding wherein the parties may present

sworn testimony, documents or other evidence, and of which a

verbatim record is made.

Participant – A party, another person admitted by the Board

to limited participation in a proceeding and staff counsel.

Party – A person who appears in a proceeding before the

Board who has a direct interest in the subject matter of the

proceeding.

Prehearing conference- A proceeding to establish a

schedule, discuss offers of settlement and identify other issues

as the Board or presiding officer may direct.

Presiding Officer –

(i) A member of the Board, or other person designated by

the Board to conduct a proceeding.

(ii) This definition supersedes 1 Pa. Code § 31.3 (relating

to the definitions).

§ 492.3. Office of Hearings and Appeals.

(a) The OHA consists of a director, clerk, hearing

officers, support staff and clerical assistants as may be

necessary to carry out the duties and responsibilities of the

office.

Source: The provisions of this § 492.2 amended December 9, 2006, effective November 21, 2006, 36 Pa.B. 7455.

475

(b) The director is responsible for the administration of

all matters assigned to the OHA, including docketing, tracking,

assignment of matters to presiding officers, ensuring that

reports or recommendations are timely made to the Board,

providing administrative support to the Board and presiding

officers, and other duties as the Board may direct, not

inconsistent with the duties of the office of hearings and

appeals.

§ 492.4. Hearing officers.

(a) A hearing officer is also a presiding officer.

Hearing officers shall be attorneys in good standing with the

Supreme Court of Pennsylvania and shall be responsible for the

timely disposition of assigned matters. Hearing officers are

employed by the Board and may be discharged only for misconduct

or good cause shown.

(b) Duties of the hearing officers may include:

(1) Conducting full and complete hearings, partial

and bifurcated hearings.

(2) Taking depositions or testimony of witnesses.

(3) Submitting reports or recommendations to the

Board.

(4) Other matters as the Board may direct.

476

(c) A hearing officer may withdraw from a proceeding when

he deems himself disqualified or he may be withdrawn by the

Board for good cause found after timely affidavits alleging

personal bias or other disqualification have been filed and the

matter has been heard by the Board or another presiding officer

to whom the Board has delegated the matter for investigation and

report.

(d) This section supersedes 1 Pa. Code § 35.186 (relating

to disqualification of a presiding officer).

§ 492.5. Presiding officers.

(a) When evidence is to be taken in a proceeding, a

presiding officer may preside at the hearing.

(b) The Board and presiding officers shall have the

following powers and authority to:

(1) Regulate the course of hearings, including the

scheduling thereof, subject to the approval of the Board, and

the recessing, reconvening, and the adjournment thereof, unless

otherwise provided by the Board, as provided in § 494.1(a)

(relating to generally).

(2) Administer oaths and affirmations.

(3) Issue subpoenas.

(4) Rule upon offers of proof and receive evidence.

477

(5) Take or cause depositions to be taken.

(6) Hold appropriate conferences before or during

hearings.

(7) Dispose of procedural matters, but not before a

proposed report, if any, to dispose of motions made during

hearings to dismiss proceedings or other motions which involve

final determination of proceedings.

(8) Certify any question to the Board for

consideration and disposition, within their discretion, or upon

direction of the Board.

(9) Submit their proposed reports in accordance with

this part.

(10) Take other action appropriate to the discharge of

their duties as may be designated by the Board and authorized by

the act.

(c) Except to the extent required for the disposition of

ex parte matters as authorized by law and by this part, a

presiding officer may not, in a proceeding, consult with a

person or party on a fact in issue unless upon notice and

opportunity for parties to participate.

(d) Presiding officers shall conduct fair and impartial

hearings and maintain order. Any disregard by participants or

478

counsel of rulings of the presiding officer on matters of order

and procedure shall be noted on the record, and if the presiding

officer deems it necessary, shall be made the subject of a

special written report to the Board.

(e) If participants or counsel engage in disrespectful,

disorderly, or contumacious language or conduct in connection

with any hearing, the presiding officer may immediately submit

to the Board a report thereon, together with recommendations,

and, in his discretion, suspend the hearing.

(f) Rulings of presiding officers may not be appealed

during the course of a hearing or conference except in

extraordinary circumstances when a prompt decision by the Board

is necessary. In such instance, the matter shall be referred

forthwith by the presiding officer to the Board for

determination.

(1) An offer of proof made in connection with an

objection to a ruling of the presiding officer rejecting or

excluding oral testimony must be a statement of the substance of

the evidence which counsel contends would be adduced by

testimony. If the excluded evidence is in documentary or

written form, a copy of the evidence shall be marked for

identification and shall constitute the offer of proof.

479

(2) Unless the Board acts upon a question referred by

a presiding officer for determination within 30 days, the

referral shall be deemed to have been denied.

(g) This section supersedes 1 Pa. Code §§ 35.185-35.190

(relating to presiding officers).

§ 492.6. Hearings generally.

(a) Unless the Board elects to hear a matter directly, all

matters, except for hearings under § 441.19 (relating to

licensing hearings for slot machine licenses), shall be assigned

to the OHA. The Board may, in its discretion, designate a

member of the Board, or other qualified person to serve as

presiding officer in a particular matter.

(b) Hearings will be public, except as provided in section

1206 of the act (relating to Board minutes and records).

(c) Hearings will be documentary unless otherwise

designated by the Board or presiding officer, or

constitutionally permissible and may provide for:

(1) Receipt of sworn testimony.

(2) Receipt of all relevant documentary evidence.

(3) Opportunity for parties to be heard.

(4) A complete evidentiary record.

(5) Submission of a report or recommendations to the

Board.

480

(d) Unless required for the disposition of ex parte

matters authorized by law, a party may not communicate directly

or indirectly, in connection with any issue of law or any matter

of fact which is disputed, with the Board or presiding officer,

except upon notice and opportunity for all parties to

participate.

(e) Hearings will be conducted in Harrisburg,

Pennsylvania, unless otherwise directed by the Board, and public

notice of the hearings shall be published in the Pennsylvania

Bulletin.

(f) Notice of hearings shall be provided to all parties,

will be in writing and served in accordance with subsection (g).

(g) Orders, notices, and other documents originating with

the Board, including forms of Board action, complaints and

similar pleadings, and other documents designated by the Board

for this purpose, shall be served by the Clerk by mail.

(h) Parties who wish to contest notice of a violation or

objection shall file notice with the OHA by mail within 15 days

of the date of the notice of the violation or objection.

(i) Motions shall be filed with the Clerk and shall be

docketed and referred to the Board or presiding officer for

disposition as appropriate.

(j) Hearings will be scheduled by the OHA, except for

hearings under § 441.19 (relating to licensing hearings for slot

481

machine licenses) which will be scheduled as the Board may

direct. Hearings for violations of the act will be scheduled

within 90 days of the initiation of action by the Bureau.

(k) Participants may waive hearings in which case the

Board or presiding officer may dispose of the matter without a

hearing on the basis of submittals, consent agreements, and

proposed orders.

(l) Verbatim hearing transcripts will be available to

interested persons for a transcription fee prescribed by the

Board.

(m) This section supplements 1 Pa. Code, Part II, §§

35.101-35.251 regarding to hearings and conferences.

§ 492.7. Prehearing and other conferences.

(a) A prehearing conference may be scheduled by the Board

or presiding officer at his discretion. The Board or a

presiding officer may also schedule a prehearing conference at

the request of one party or by agreement of the parties.

(b) When the Board or presiding officer directs that a

prehearing conference be held, all parties shall appear at the

time and place designated. Notice of the time and place of the

conference will be given to all parties. At the discretion of

Source: The provisions of this § 492.6 amended December 23, 2006, effective December 4, 2006, 36 Pa.B. 7862.

482

the Board or presiding officer, the conferences may be conducted

telephonically.

(c) The following matters will be considered at prehearing

conference:

(1) The possibilities for settlement of the

proceeding, subject to the approval of the Board.

(2) The amount of hearing time which will be required

to dispose of the proceeding and the establishment of a schedule

of hearing dates.

(3) Other matters that may aid in expediting the

orderly conduct and disposition of the proceeding and the

furtherance of the public interest, including, but not limited

to, the following:

(i) The simplification of the issues.

(ii) The exchange and acceptance of service of

exhibits proposed to be offered in evidence.

(iii) The obtaining of admissions as to, or

stipulations of, facts not remaining in dispute, or the

authenticity of documents which might properly shorten the

hearing.

(iv) The limitation of the number of witnesses.

(v) The discovery or production of data.

483

(vi) Other matters as may properly be dealt with

to aid in expediting the orderly conduct and disposition of the

proceeding.

(d) This section supplements 1 Pa. Code §§ 35.111-35.116

(relating to prehearing conferences).

§ 492.8. Presentation and effect of stipulations.

(a) Independently of the orders or rulings issued by the

Board or presiding officer relating to prehearing and other

conferences, the participants may stipulate as to relevant

matters of fact or the authenticity of relevant documents. The

stipulations may be received in evidence at a hearing, and when

so received will be binding on the participants with respect to

the matters stipulated.

(b) This section supersedes 1 Pa. Code § 35.155 (relating

to presentation and effect of stipulations).

CHAPTER 493 PLEADINGS


(a) Pleadings permitted are as follows:

(1) Complaints.

(2) Petitions.

(3) Motions.

(4) Answers to pleadings.

(5) Exceptions.

(6) Appeals.

484

(b) Filing fees for pleadings, copies and other

administrative requests will be in accordance with a fee

schedule published by the Board in the Pennsylvania Bulletin,

available on the Board’s website, and in the Office of the Clerk

(Clerk).

(c) Pleadings shall be filed with the Clerk. The Clerk

will issue a file number, or if a file number has already been

issued, stamp the pleading accordingly.

(d) This section supplements 1 Pa. Code §§ 35.1-35.2 and

35.9-35.11 (relating to applications; and formal complaints).

§ 493.2. Formal complaints.

(a) Procedures for complaints shall be in accordance with

1 Pa. Code §§ 35.9-35.11 (relating to formal complaints), and as

supplemented by this part.

(b) Complaints may be filed by the Bureau, parties,

applicants, eligible applicants, licensees, permittees, persons

registered or certified by the Board, and other persons

designated by the Board.

(c) A proceeding against a licensee, permittee, persons

registered or certified by the Board or employee of a licensee,

permittee, or persons registered or certified by the Board shall

be brought on by written complaint filed by the Bureau, which

must include a statement setting forth in ordinary and concise

485

language the charges and the acts or omissions supporting the

charges.

(d) Within 15 days of service of the complaint filed by

the Bureau, the respondent may file with the Clerk a notice of

defense, in which he may perform one of the following:

(1) Request a hearing.

(2) Admit the accusation in whole or in part.

(3) Present new matters or explanation by way of

defense.

(4) State any legal objection to the complaint.

(e) The respondent may be entitled to a hearing on the

merits if he files the required notice of defense within the

time allowed by subsection (d). The notice will be deemed a

specific denial of all parts of the complaint not expressly

admitted.

(f) Failure to timely file the required notice of defense

or to appear at the hearing constitutes an admission of all

matters and facts contained in the complaint and a waiver of the

respondent’s rights to a hearing, but the Board may order a

hearing.

(g) Affirmative defenses shall be specifically stated, and

unless objection is taken as provided in subsection (d)(4),

objections to the form of the complaint shall be deemed waived.

486

(h) The Clerk will deliver or send by mail a notice to all

parties at least 10 days prior to the hearing.

(i) Applicants may request a hearing on any matter by

filing a complaint, or as part of a petition for special relief.

When a request for a hearing is initiated by complaint or

petition, the party making the request shall state in clear and

concise language the reasons for requesting a hearing and the

basis for the request. The Board will act on the request in

accordance with due process and its duties and obligations under

the act.

(j) Applicants who receive notice of deficiencies may file

objections to the notice, and request a hearing by filing a

complaint. The complaint must state in clear and concise

language the basis for the objections, and the relief sought.

(k) Applicants who object to nonadjudicatory actions of

the Board may file objections to the action by filing a

complaint. The complaint must state in clear and concise

language the basis for the objections, and the relief sought.

(l) Except as otherwise expressly provided in the act or

this part, a person who holds a license, certification, permit

or registration shall at all times have the burden of proof in

complaint proceedings. It shall be the person’s affirmative

responsibility to establish the facts of their case by clear and

convincing evidence, including:

487

(1) Why the person should not be subject to Board-

imposed administrative sanction or other discipline.

(2) Why the person does not owe an assessment, cost,

fee, fine, penalty, restitution, tax or monetary sanction.

(m) This section supplements 1 Pa. Code §§ 35.9-35.11 and

35.14 (relating to formal complaints; and orders to show cause).

§ 493.3. Satisfaction of formal complaints.

(a) If the respondent satisfies a formal complaint either

before or after a hearing, a statement to that effect signed by

the complainant shall be filed with the Clerk setting forth that

the complaint has been satisfied and requesting dismissal or

withdrawal. Except as requested by the parties, the Board will

not be required to render a final order upon the satisfaction of

a complaint.

(b) In lieu of a hearing, the complainant and respondent

may certify to the Board or presiding officer that a consent

agreement has been reached satisfying the complaint. The consent

agreement shall be presented to the Board and the Board will

enter an order, if appropriate, incorporating and adopting the

consent agreement.

(c) This section supersedes 1 Pa. Code § 35.41 (relating to

satisfaction of complaints).


488

§ 493.4. Petitions generally.

(a) Petitions may be filed by parties, applicants,

eligible applicants, licensees, permittees, persons registered

or certified by the Board, and other persons permitted by the

Board.

(b) Petitions for relief must be in writing, state clearly

and concisely the grounds, the interest of the petitioner in

the subject matter, the facts relied upon and the relief

sought.

(c) The procedure for petitions shall be in accordance

with 1 Pa. Code §§ 35.17-35.19 (relating to petitions

generally; petitions for issuance, amendment, waiver or

deletion of regulations; and petitions for declaratory orders).

Petitions must conform to § 491.2 (relating to filing

generally) and Chapters 495 and 497 (relating to documentary

filings; and time), and be served on all persons directly

affected and on other parties whom petitioner believes will be

affected by the petition, including the Board. The service

shall be evidenced with a certificate of service filed with the

petition.

(d) Copies shall also be served in accordance with the

Board’s direction.

(e) This section supplements 1 Pa. Code §§ 35.17-35.19.

§ 493.5. (Reserved).

489

§ 493.6. Answers.

(a) Answers to complaints, petitions, motions and other

pleadings shall be filed with the Clerk within 20 days after the

date of service, unless a different time is prescribed by

statute, the Board or presiding officer.

(b) The procedure for answers shall be in accordance with

1 Pa. Code §§ 35.35-35.40 regarding answers.

(c) This section supplements 1 Pa. Code §§ 35.35-35.40.

§ 493.7. Consolidation.

(a) The Board or presiding officer, with or without

motion, may order proceedings involving a common question of law

or fact to be consolidated. The Board or presiding officer may

make orders concerning the conduct of the proceeding as may

avoid unnecessary costs or delay.

(b) The section supersedes 1 Pa. Code § 35.45 (relating to

consolidation).

§ 493.8. Amendments and withdrawal of pleadings.

Amendments and withdrawal of pleadings shall be in

accordance with 1 Pa. Code §§ 35.48-35.51 (relating to amendment

and withdrawal of pleadings).

§ 493.9. Motions generally.

The procedures for motions shall be in accordance with 1

Pa. Code §§ 35.177-35.180 (relating to motions).

§ 493.10. Preliminary motions.

490

(a) A preliminary motion may be filed by a party, must

state specifically the grounds relied upon, and be limited to

the following:

(1) A motion questioning the jurisdiction of the

Board or the presiding officer.

(2) A motion to strike a pleading that is

insufficient as to form.

(3) A motion for a more specific pleading.

(b) Except when a motion for a more specific pleading is

filed, an answer to a preliminary motion shall be filed within

the time period prescribed for answers to complaints, petitions

and motions. All preliminary motions shall be raised at the same

time.

(c) If a motion for more specific pleading is filed, an

answer may not be filed until further directed by the Board or

presiding officer.

(d) A preliminary motion will be decided by the Board or

presiding officer within 30 days of the filing of the motion.

(e) If a preliminary motion to strike is granted, the

participant who submitted the stricken pleading has the right to

file an amended pleading within 10 days of service of the order.

(f) This section supplements 1 Pa. Code §§ 35.177-35.180

(relating to motions).

491

§ 493.11. Motions for summary judgment and judgment on the

pleadings.

(a) Motion for judgment on the pleadings. After the

pleadings are closed, but within a time so that the hearing is

not delayed, a participant may move for judgment on the

pleadings. An answer to a motion for judgment on the pleadings

may be filed within 20 days of the date of service of the

motion.

(b) Motion for summary judgment. After the pleadings are

closed, but within a time so that the hearing is not delayed, a

party may move for summary judgment based on the pleadings and

depositions, answers to interrogatories, admissions and

supporting affidavits.

(1) An answer, including an opposing affidavit to a

motion for summary judgment, may be filed within 20 days of the

date of service of the motion.

(2) The answer may be supplemented by pleadings and

depositions, answers to interrogatories or further affidavits

and admissions.

(c) Decisions on motions.

(1) The Board or presiding officer will grant or deny

a motion for judgment on the pleadings or a motion for summary

judgment, as appropriate. The judgment sought will be rendered

if the pleadings, depositions, answers to interrogatories and

492

admissions, together with affidavits, if any, show that there is

no genuine issue as to a material fact and that the moving

participant is entitled to a judgment as a matter of law. If a

motion is granted by a presiding officer, it will be in the form

of a recommendation which will be subject to exceptions, and

will be in writing. As in the case of other recommendations, the

procedures regarding exceptions to the Board apply.

(2) The presiding officer may recommend a partial

summary judgment if the pleadings, depositions, answers to

interrogatories and admissions, together with affidavits, if

any, show that there is no genuine issue as to a material fact

and that the moving participant is entitled to a judgment as a

matter of law on one or more but not all outstanding issues.

The presiding officer will grant or deny the motion in the form

of a recommended decision.

(d) This section supplements 1 Pa. Code Chapter 35,

Subchapter D. (relating to motions).

§ 493.12. Discovery.

(a) Upon written request from a party in a proceeding

served upon another party in the proceeding, the requesting

party shall be entitled to the name and address of any witness

who may be called to testify on behalf of the responding party

and all documents or other material in the possession or control

of the responding party which the responding party reasonably

493

expects will be introduced into evidence. The responding party

shall be under a continuing duty to update its response to this

request.

(b) The presiding officer may, upon request of a party,

permit the testimony of a witness or the introduction of other

evidence not disclosed pursuant to a request made under

subsection (a), if following proffer by the party seeking to

present such evidence, the presiding officer determines that

justice so requires.

(c) Upon the request of a party in a proceeding and for

good cause shown, the presiding officer may allow other

discovery to be conducted, but the information furnished to or

obtained by the Board or the Bureau from any source, including

information contained in the Bureau of Licensing Suitability

Report, or information or files in the possession of the Bureau,

or information in the possession or control of an agency which

relates to an ongoing civil or criminal investigation, will not

be discoverable under this subsection.

(d) Depositions will be conducted in accordance with 1 Pa.

Code §§ 35.145-35.152 (relating to depositions).

§ 493.13. Intervention.


494

(a) The right to intervene in a proceeding before the

Board or a presiding officer is within the sole discretion of

the Board.

(b) A person wishing to intervene in a proceeding may file

a petition with the Clerk which shall be served on all named

parties in accordance with this section. When a Petition to

intervene is filed with the Clerk, it will be referred to the

Board which will issue a determination as soon as practicable.

(c) A person may file a petition to intervene if:

(1) The person has an interest in the proceeding

which is substantial, direct and immediate.

(2) The interest is not adequately represented by a

party to the proceeding.

(3) The person may be bound by the action of the

Board in the proceeding.

(d) Petitions to intervene may be filed at any time

following the filing of an application, petition, complaint, or

other document seeking Board action, but no later than 30 days

prior to the date set for a hearing unless, in extraordinary

circumstances for good cause shown, the Board authorizes a later

filing.

(e) Petitions to intervene must set out clearly and

concisely the facts demonstrating the nature of the alleged

right or interest of the petitioner, the grounds of the proposed

495

intervention, and the position of the petitioner in the

proceeding. The petitioner shall fully advise the parties and

the Board of the specific issues of fact or law to be raised or

controverted, by admitting, denying or otherwise answering,

specifically and in detail, each material allegation of fact or

law asserted in the petition or complaint initiating the

proceeding, and citing by appropriate reference provisions or

other authority relied on.

(f) Petitions to intervene must conform to the service and

notice requirements of this section.

(g) A participant may file an answer to a petition to

intervene, and in default thereof, will be deemed to have waived

any objection to the granting of the petition. If made, answers

shall be filed within 10 days after the date of service of the

petition, unless for cause the Board prescribes a different

time.

(h) Except where the Board determines that it is necessary

to develop a comprehensive evidentiary record, the participation

of a person granted the right to intervene in a proceeding will

be limited to the presentation of evidence through the

submission of written statements attested to under oath. The

written statements shall be part of the evidentiary record.

496

(i) Petitions to intervene in licensing hearings for slot

machine licenses shall be governed by § 441.19(x) (relating to

licensing hearing for slot machine licenses).

(j) This section supersedes 1 Pa. Code §§ 35.27-35.22, and

35.36.

§ 493.14. Consent agreements.

(a) Parties in a proceeding may propose consent agreements

to the hearing officer or to the Board at any stage of a

proceeding, including prior to the entry of a final order or

prior to the initiation of proceedings.

(b) Consent agreements must be in writing, signed by all

parties in the proceeding, and accurately reflect the terms of

the consent agreement, including the facts agreed to by the

parties constituting the grounds for the action proposed in the

consent agreement.

(c) If the consent agreement is proposed in a matter that

is the subject of a proceeding before a hearing officer, the

proposal of the consent agreement will stay the proceeding until

the consent agreement is acted upon by the Board.

(d) The consent agreement shall be presented to the Board

for its approval or disapproval. If the Board approves the

consent agreement, it will become the final order of the Board.

If the Board disapproves the consent agreement, the parties will

be notified and the consent agreement and any documents solely

497

relating to the consent agreement will not constitute part of

the record.

CHAPTER 494. HEARING PROCEDURE.


(a) A hearing calendar of all proceedings set for hearing

will be maintained by the Clerk to the Board. All matters

required to be determined upon the record will be placed on the

hearing calendar, and will be in their order of assignment as

far as practicable. All matters will be heard in Harrisburg,

unless a different site shall be determined by the Board. The

Board, in its discretion with or without motion, for cause may

at any time with due notice to the participants advance or

postpone any proceeding on the hearing calendar.

(b) Hearings will be held before the Board or presiding

officer, and all appearances, including staff counsel

participating, will be entered upon the record, with a notation

on whose behalf each appearance is made. A notation will be

made in the record of the names of the members of the technical

staff of the Board participating, including accountants, and

other experts, who are assisting in the investigation of the

matter. This section supersedes 1 Pa. Code §§ 35.123 and 35.124

(relating to conduct of hearings; and order of procedure).

(c) In oral and documentary hearings, neither the Board

nor the presiding officer will be bound by technical rules of

498

evidence, and all relevant evidence of reasonably probative

value may be received. Reasonable examination and cross-

examination will be permitted at all oral hearings. If a party

does not testify in his own behalf, he may be called and

examined as if under cross-examination.

(d) Subsection (a) supersedes 1 Pa. Code § 35.102

(relating to hearing calendar).

§ 494.2. Oral hearings.

Oral hearings will be conducted in accordance with 1 Pa.

Code §§ 35.121-35.126 and 35.137-35.173.

§ 494.3. Documentary hearings.

(a) Documentary hearings will be held before the Board or

a presiding officer.

(b) The parties will be notified at least 15 days prior

to the date set for hearing, and the evidentiary record will be

closed 5 days prior to the date set for hearing.

(c) Parties may submit documents and other evidence,

except that witnesses may not testify. Depositions and

interrogatories may be taken at any time prior to the close of

the evidentiary record, and may be introduced for consideration

by the Board or presiding officer.

Source: The provisions of this § 494.1 amended June 10, 2006, effective May 19, 2006, Pa.B. 2899.

499

(d) Transcripts of public input hearings, if any, will be

included in the evidentiary record for the Board’s

consideration.

§ 494.4. Report or recommendation of the presiding officer.

(a) A report or recommendation of the presiding officer

may be required by the Board, in both oral and documentary

hearings, except that recommendations will not be made in

proceedings involving the issuance, approval, renewal,

revocation, suspension, or conditioning of a license.

(b) The presiding officer will file and certify with the

Board a verbatim record of any oral hearing, all documents

submitted for consideration, and a report or recommendation,

when required, as soon as practicable after the conclusion of

the hearing and expiration of the time for filing of briefs.

(c) The presiding officer’s report or recommendation will

include a statement of:

(1) Findings and conclusions, as well as the reasons

or basis therefore, upon all the material issues of fact, law,

or discretion presented on the record.

(2) The appropriate regulation, order, sanction,

relief, or denial thereof.

(3) All facts officially noticed, relied upon in the

decision.

500

(d) The report or recommendation will be in writing,

provided to all parties, and will be part of the public record,

except for matters and materials designated as confidential by

the Board. Service will be in accordance with § 492.6 (e)

(relating to hearings generally).

(e) This section supplements 1 Pa. Code §§ 35.201-35.206

regarding proposed reports generally.

§ 494.5. Review.

(a) The record of the hearing will be transmitted to the

Board and will be made available to all parties.

(b) The Board will review the record of the hearing and

the report or recommendation of the presiding officer. The Board

may adopt some or all of the recommendations, conduct a full or

partial de novo hearing, or remand all or part of the matter to

the presiding officer for the taking of additional evidence or

clarification of issues, or make an adjudication based on the

record.

(c) All parties have the right to file a brief prior to a

final order of the Board.

§ 494.6. Reopening of record.

(a) After the conclusion of the hearing, a participant in

a proceeding may file with the presiding officer, prior to the

issuance of a report or recommendation, otherwise with the

Board, a petition to reopen the proceeding for the purpose of

501

taking additional evidence. The petition must set forth clearly

the facts claimed to constitute grounds requiring reopening of

the proceeding, including material changes of fact or law

alleged to have occurred since the hearing was concluded.

(b) Answers shall be filed within 10 days of service of

the petition. If no answers are filed, objections to the

granting of the petition are waived.

(c) As soon as practicable after the filing of the

petition and answer, the Board or presiding officer will grant

or deny the petition.

(d) Prior to filing a report or recommendation, the

presiding officer, after notice to the participants, may reopen

the proceedings for the reception of further evidence on his own

motion, if the presiding officer had reason to believe that

conditions of fact or of law have so changed as to require, or

that the public interest requires, the reopening of the

proceedings.

(e) Prior to the issuance by the Board of a final order,

the Board, after notice to the participants, may without motion

reopen the proceeding for the reception of further evidence, if

the Board has reason to believe that conditions of fact or law

have so changed as to require, or that the public interest

requires, the reopening of the proceeding.

502

(f) This section supersedes 1 Pa. Code §§ 35.231-35.233

(relating to reopening of record).

§ 494.7. Exceptions.

(a) A party may file exceptions to the report or

recommendations of the presiding officer within 10 days of the

date of the report or recommendations, unless the time is

extended upon good cause shown.

(b) Exceptions must be in writing, filed with the Clerk,

and state with particularity the matter objected to, including

the portion of the record where the basis of the objection may

be found.

(c) The party filing the exceptions shall attach a brief

with the filing. The brief must set forth the party’s position

in clear and concise terms and be in accordance with 1 Pa. Code

§ 35.212 (relating to content and form of briefs on exceptions).

The length of the brief may be limited by the presiding officer.

The brief shall be served on the Board, the presiding officer

and other parties of record.

(d) Failure to file a brief on exceptions within the time

allowed shall constitute a waiver of all objections of the

report or recommendations. Exceptions to any part of the report

or recommendations may not thereafter be raised before the Board

in oral argument, if an oral argument is permitted, or in an

application for rehearing or reconsideration, and shall be

503

deemed to be waived. The Board may refuse to consider

exceptions to a ruling admitting or excluding evidence unless

there was an objection at the time the ruling was made or within

any deferred time provided by the presiding officer.

(e) Exceptions will be considered by the Board and will be

limited to the record established during the administrative

hearing. The Board may permit evidence not already established

in the record if compelling reasons are shown for its

submission, the party requesting its admission did not

previously know of its existence and its existence could not

have been discovered with the exercise of reasonable diligence.

(f) The Board will conduct a documentary hearing on the

exceptions within 30 days of receipt of the exceptions brief,

unless exigent circumstances require a longer period of time.

The Board may grant or deny the exceptions in whole or in part.

(g) The Board will publish its final order in

consideration of the presiding officer’s report or

recommendation and any filed exceptions, and notify all parties

by regular mail.

(h) This section supplements 1 Pa. Code §§ 35.211-35.214

(relating to exceptions to proposed reports).

§ 494.8. Rehearing or reconsideration.

(a) A party to a proceeding may file an application for

rehearing or reconsideration by petition within 15 days after

504

the final order of the Board. The petition must state concisely

the alleged errors in the adjudication or other order of the

Board. If a final order or other order of the Board is sought

to be vacated, reversed or modified by reason of matters that

have arisen since the hearing and decision or order, or by

reason of a consequence that would result from compliance

therewith, the matters relied upon by the petitioner must be set

forth in the petition.

(b) No answers to petitions for rehearing or

reconsideration will be entertained by the Board. If the Board

grants the rehearing or reconsideration, an answer may be filed

by a participant within 15 days after the issuance of the order

granting rehearing or reconsideration. The response will be

confined to the issues upon which rehearing or reconsideration

has been granted.

(c) Unless the Board acts upon the petition for rehearing

or reconsideration within 30 days after it is filed, the

petition will be deemed to have been denied.

(d) This section does not apply to proceedings resulting

in any final order, determination or decision of the Board

involving the approval, issuance, denial or conditioning of all

licensed entity applications which are subject to the appellate

requirements of section 1204 of the act (relating to licensed

entity application appeals from board).

505

(e) This section supersedes 1 Pa. Code § 35.241. (relating

to application for rehearing or reconsideration).

§ 494.9. Briefs and oral argument.

(a) All parties shall be afforded an opportunity to submit

briefs prior to a final order of the Board. Briefs shall be

filed with the Clerk. If a case has previously been assigned to

a presiding officer, a copy of the brief shall be submitted to

the presiding officer.

(b) Oral argument on substantial issues may be heard at

the discretion of the Board or presiding officer.

§ 494.10. Reports of compliance.

(a) When a person subject to the jurisdiction of the Board

is required to do or perform an act by a Board order, permit, or

license provision, there shall be filed with the Clerk within 30

days following the date when the requirement becomes effective,

a notice, stating that the requirement has or has not been met

or complied with, unless the Board provides otherwise for

compliance or proof of compliance.

(b) This section supersedes 1 Pa. Code § 35.251 (relating

to reports of compliance).

§ 494.11. Appeals.


506

(a) A party may appeal final orders of the Board in

accordance with the act, in the form prescribed in the

Pennsylvania Rules of Appellate Procedure. Notice of appeal

shall be filed with the Clerk within 30 days of a final order of

the Board.

(b) The filing of an appeal will not stay enforcement of

the decision or final order of the Board unless the stay is

obtained from the court upon application in accordance with the

Rules of Appellate Procedure, or from the Board upon the terms

and conditions as it deems proper.

(c) Within 10 days, the party filing the notice of appeal

shall file a concise statement of matters complained of with the

Office of the Clerk. Matters not raised in the statement will

be waived.

CHAPTER 495. DOCUMENTARY FILINGS

§ 495.1. Form of documentary filings generally.

(a) Applications, petitions, complaints, answers or

similar documents shall be divided into numbered paragraphs.

(b) Copies of contracts, agreements, permits or other

writings referred to in the application or petition may be

attached as exhibits. Copies of writings or orders already of

record with the Board need not be attached to the application or

petition if reference by docket number is made to the proceeding

in which they were filed.

507

(c) Pleadings or other documents filed with the Board in a

proceeding shall clearly show the docket number or similar

identifying symbols, if any, and title of the proceeding before

the Board. They shall also show, in the title of a particular

pleading or other document filed the name of the person on whose

behalf the filing is made. If more than one person is involved,

a single name only need be included in the title.

(d) Pleadings shall be endorsed with an address and phone

number where papers may be served in connection with the pending

proceedings. Endorsement with a fax number shall constitute

endorser’s agreement to accept papers connected with the

proceeding by fax. Notation of counsel’s current Supreme Court

identification number issued by the Court Administrator of

Pennsylvania shall constitute proof of the right to practice in

the Commonwealth.

(e) Subsections (a)-(c) supersede 1 Pa. Code § 31.5

(relating to communications and filings generally).

§ 495.2. Form of documents.

(a) The method of receipt and transmission of information

will be under a policy established by the Board.

(b) Subsection (a) supersedes 1 Pa. Code § 33.2 (relating

to form).

§ 495.3. Incorporation by reference.

508

(a) Except as otherwise provided in subsection (b),

documents on file with the Board may be incorporated by

reference into a subsequently filed pleading or other document.

A document may be so incorporated only by reference to the

specific document and to the prior filing and docket number at

which it was physically filed.

(b) No document which has been on file with the Board for

more than 7 years may be incorporated by reference in a current

document unless the person filing the current document first

makes inquiry to the Office of the Clerk and ascertains that the

earlier document continues to be readily available in the active

records of the Board.

§ 495.4. Single pleading covering more than one matter.

(a) Except as otherwise provided under this chapter

(relating to formal proceedings), a single pleading may be

accepted for filing with respect to a particular transaction and

one or more related transactions and shall be deemed to be a

single filing for purposes of the computation of fees under

Chapter 471 (relating to schedule of fees payable to the Board).

(b) If, upon review, the Board determines that the

transactions are not closely related or otherwise properly

joined, the Board will direct that the single pleading be

refiled as two or more separate pleadings each subject to a

separate filing fee.

509

(c) Subsection (a) supersedes 1 Pa. Code § 33.4 (relating

to Single pleading or submittal covering more than one matter).

§ 495.5. Execution of documents.

(a) Signature. Except as may be otherwise ordered or

requested by the Board, the original copy of a pleading, or

other document shall be signed in ink by the party in interest,

or by his attorney, as required by subsection (b), and show the

office and post office address of the party or attorney. Other

copies filed shall conform thereto.

(b) Subscription.

(1) A pleading or other document filed with the Board

shall be subscribed by one of the following:

(i) The person filing the documents, and

severally if there is more than one person so filing.

(ii) An officer if it is a corporation, trust,

association or other organized group.

(iii) An officer or authorized employee thereof if

it is another agency, a political subdivision, or other

governmental authority, agency or instrumentality.

(iv) An attorney having authority with respect

thereto.

(2) A document filed by a corporation, trust,

association or other organized group, may be required to be

510

supplemented by appropriate evidence of the authority of the

officer or attorney subscribing the documents.

(c) Effect.

(1) The signature of the person subscribing a document

filed with the Board constitutes a certificate by the individual

that:

(i) The person has read the document being

subscribed and filed, and knows the contents thereof.

(ii) The document has been subscribed and

executed in the capacity specified upon the document with full

power and authority to do so, if executed in a representative

capacity.

(iii) The document is well grounded in fact and is

warranted by existing law or a good faith argument for the

extension, modification or reversal of existing law, to the best

of the person’s knowledge, information and belief formed after

reasonable inquiry.

(iv) The document is not interposed for an

improper purpose, such as to harass or to cause unnecessary

delay or needless increase in the cost of litigation.

(2) If a document is signed in violation of this

subsection, the Board, upon motion or upon its own initiative,

may impose upon the person who signed it, a represented party,

or both, an appropriate sanction, which may include striking the

511

document, dismissal of the proceeding or the imposition of civil

penalties under section 1518 of the act (relating to prohibited

acts; penalties).

(d) Subsections (a)-(c) are identical to 1 Pa. Code §

33.11 (relating to execution).

§ 495.6. Verification.

(a) Applications, petitions, formal complaints, motions

and answers thereto containing an averment of fact not appearing

of record in the action or containing a denial of fact shall be

personally verified by a party thereto or by an authorized

officer of the party if a corporation or association.

Verification means a signed, written statement of fact supported

by oath or affirmation or made subject to the penalties of 18

Pa.C.S. § 4904 (relating to unsworn falsification to

authorities). If verification is required, notarization is not

necessary.

(b) The verification form should comply substantially with

the following:

VERIFICATION

I, __________________, hereby state that the facts

above set forth are true and correct (or are true and

correct to the best of my knowledge, information and

belief) and that I expect to be able to prove the

facts. I understand that the statements herein are

512

made subject to the penalties of 18 Pa.C.S. § 4904

(relating to unsworn falsification to authorities).

Date:___________ _______________________________

(Signature)

(c) When an affidavit is used, the form should comply

substantially with the following:

AFFIDAVIT

I, __________________ (Affiant) being duly sworn

(affirmed) according to law, depose and say that (I am

authorized to make this affidavit on behalf of

___________ corporation, being the holder of the

office of ____________ with that corporation,) and

that the facts above set forth are true and correct

(or are true and correct to the best of my knowledge,

information and belief) and (I or corporation) expect

to be able to prove the facts.

_____________________________ (Signature of affiant)

Sworn and subscribed before me this ________day of

__________, 20____.

__________________________________________ (Signature of official administering oath)

513

(d) An individual who executes a pleading or other

document knowing that it contains a false statement and who

causes it to be filed with the Board shall be subject to

prosecution of a misdemeanor of the second degree in violation

of 18 Pa.C.S. § 4904(a).

(e) Subsections (a)-(d) supersede 1 Pa. Code § 33.12

(relating to verification).

§ 495.7. Number of copies.

(a) An original and three copies of pleadings or documents

other than correspondence shall be furnished to the Board at the

time of filing, except as may be otherwise required by statute

or ordered or requested by the Board.

(b) In the case of applications and petitions, one of the

copies filed with the Board may be filed without exhibits.

(c) In the case of complaints or petitions, when more than

one respondent is named, an additional copy of the complaint or

petition shall be filed for each additional respondent.

(d) Subsections (a)-(c) supersede 1 Pa. Code § 33.15

(relating to number of copies).

CHAPTER 497. TIME

§ 497.1. Date of filing.

Source: The provisions of this § 495.7 amended October 8, 2005, effective September 28, 2005, 35 Pa.B. 5619.

514

(a) Whenever a pleading or other document is required or

permitted to be filed under this part or by statute, it will be

deemed to be filed on one of the following dates:

(1) On the date actually received in the Office of

the Clerk.

(2) On the date deposited with an overnight express

package delivery service as shown on the express delivery

receipt attached to or included within the envelope containing

the document.

(3) On the date deposited in the United States mail

as shown by the United States Postal Service stamp on the

envelope or on a United States Postal Service Form 3817

certificate of mailing. A mailing envelope stamped by an in-

house postage meter is insufficient proof of the date of

mailing.

(b) Failure to include a legible delivery receipt with the

document may result in an untimely filing.

(c) Except as otherwise permitted by the Board, a document

transmitted by facsimile or electronically to the Board will not

be accepted for filing within the meaning of this section.

(d) Subsections (a)-(c) supersede 1 Pa. Code § 31.11

(relating to timely filing required).

§ 497.2. Computation of time.

515

(a) Except as otherwise provided by statute, in computing

a period of time prescribed or allowed by this title or by

statute, the day of the act, event or default after which the

designated period of time begins to run is not included. The

last day of the period is included, unless it is Saturday,

Sunday or a legal holiday in this Commonwealth, in which event

the period shall run until the end of the next day which is

neither a Saturday, Sunday or holiday. Intermediate Saturdays,

Sundays and legal holidays shall be included in the computation.

(b) Except as otherwise provided by statute, in computing

a period of time prescribed or allowed by this title or by

statute which is measured by counting a specified number of days

backward from a scheduled future act, event or default, the day

of the scheduled future act, event or default is not included.

The day on which the prescribed or allowed action is to occur

shall be included, unless it is a Saturday, Sunday or a legal

holiday in this Commonwealth, in which event the day of the

prescribed or allowed action shall run until the next preceding

day which is neither a Saturday, Sunday or holiday. A part-day

holiday shall be considered as a holiday. Intermediate

Saturdays, Sundays and legal holidays are included in the

computation.

(c) Subsections (a) and (b) supersede 1 Pa. Code § 31.12

(relating to computation of time).

516

§ 497.3. Issuance of Board orders.

(a) In computing a period of time involving the date of

the issuance of an order by the Board, the day of issuance of an

order will be the date the Office of the Clerk enters the order.

An order will not be made public prior to its entry except when,

in the Board’s judgment, the public interest so requires. The

date of entry of an order may or may not be the day of its

adoption by the Board. The Clerk will clearly indicate on each

order the date of its adoption by the Board and the date of its

entry.

(b) The date of entry of an order which is subject to

review by the Supreme Court of Pennsylvania is governed by 2

Pa.C.S. Chapter 7, Subchapter A (relating to judicial review of

Commonwealth agency action). The date of issuance of an order

shall be deemed to be the date of entry for the purposes of

computing the time for appeal under an applicable statute

relating to judicial review of Board action.

(c) Subsections (a) and (b) are identical to 1 Pa. Code §

31.13 (relating to issuance of agency orders).

§ 497.4. Effective dates of Board orders.

(a) An order of the Board promulgating regulations shall

be effective upon publication in the Pennsylvania Bulletin

unless otherwise specially provided in the order.

517

(b) Except as provided in subsection (a), an order of the

Board shall be effective as of the date of entry unless

otherwise specially provided in the order.


(relating to effective dates of agency orders).

§ 497.5. Extensions of time and continuances.

(a) Extensions of time shall be governed by the following:

(1) Except as otherwise provided by statute, whenever

under this part or by order of the Board, or notice given

thereunder, an act is required or allowed to be done at or

within a specified time, the time fixed or the period of time

prescribed may, by the Board, for good cause be extended upon

motion made before expiration of the period originally

prescribed or as previously extended. Upon motion made after

the expiration of the specified period, the act may be permitted

to be done where reasonable grounds are shown for the failure to

act.

(2) Requests for the extension of time in which to

file briefs shall be filed at least 5 days before the time fixed

for filing the briefs unless the Board, for good cause shown

allows a shorter time.

(b) Except as otherwise provided by statute, requests for

continuance of hearings or for extension of time in which to

perform an act required or allowed to be done at or within a

518

specified time by this part or by order of the Board, shall be

by motion in writing, timely filed with the Board, stating the

facts on which the application rests, except that during the

course of a proceeding, the requests may be made by oral motion

in the hearing before the Board. Only for good cause shown will

requests for continuance be considered. The requests shall be

submitted at least 5 days prior to the hearing date.


(relating to extensions of time).

CHAPTER 499. REPRESENATION BEFORE THE BOARD

§ 499.1. Appearance in person.

(a) An individual who is a party in a proceeding before

the Board may represent himself before the Board.

(b) Except as provided in subsection (a), a party in a

proceeding before the Board shall be represented by an attorney

authorized to appear before the Board in accordance with § 499.2

(relating to appearance by attorney).


(relating to appearance in person).

§ 499.2. Appearance by attorney.

Source: The provisions of this § 499.1 amended May 27, 2006, effective May 4, 2006, 36 Pa.B. 2615; amended June 10, 2006, effective 19, 2006, 36 Pa.B. 2899.

519

(a) A party in a proceeding before the Board who elects to

be represented by an attorney in the proceeding, or who is

required by § 499.1 (relating to appearance in person) to be

represented by an attorney in the proceeding, shall be

represented by an attorney at law admitted to practice before

the Pennsylvania Supreme Court, an attorney admitted to practice

before the highest court of a jurisdiction other than the

Commonwealth which permits attorneys licensed in this

Commonwealth to practice before its courts and agencies, or an

attorney authorized in accordance with subsection (b) to appear

in connection with the proceeding.

(b) An attorney admitted to practice before the highest

court of a jurisdiction other than the Commonwealth which does

not permit attorneys licensed in this Commonwealth to appear

before its courts and agencies may, at the discretion of the

Board, be authorized to appear in connection with a particular

proceeding. The Board will determine whether to grant the

authorization upon the filing of a motion with the Clerk to the

Board by an attorney admitted to practice law before the

Pennsylvania Supreme Court and in good standing therewith, which

contains the information required to satisfy the written notice

provision of Pa.B.A.R. 301 (relating to admission pro hac vice),

and provided that the attorney filing the motion shall be and

remain the attorney of record in the proceeding and further

520

provided that both the attorney of record and the attorney

admitted under this subsection shall both sign all documents

submitted or filed in connection with the proceeding.

(c) Subsection (a) supersedes 1 Pa. Code § 31.22 (relating

to appearance by attorney).

§ 499.3. Other representation prohibited at hearings.

(a) Participants, individuals, partnerships, associations,

corporations or governmental entities may not be represented at

a hearing before the Board except:

(1) As stated in sections 499.1 and 499.2 (relating

to appearance in person; and appearance by attorney).

(2) As otherwise permitted by the Board in a specific

case.


to other representation prohibited at hearings).

§ 499.4. Notice of appearance or withdrawal.

(a) An individual appearing without representation before

the Board shall file with the Office of the Clerk an address for

service of a notice or other written communication. A change in

address which occurs during the course of the proceeding shall

be reported to the Office of the Clerk promptly.

Source: The provisions of this § 499.2 amended May 27, 2006, effective May 4, 2006, 36 Pa.B. 2615.

521

(b) An attorney whose name and address appear in a

representative capacity on an initial pleading filed with the

Office of the Clerk shall be considered to have entered an

appearance in that proceeding. An attorney who enters the

matter at a later stage of the proceeding shall file with the

Office of the Clerk a written notice of the appearance, which

shall state his name, address and telephone number and the name

and address of the person on whose behalf he appears. The

notice shall be served on the participants in the proceeding. A

change in address which occurs during the course of the

proceeding shall be reported to the Office of the Clerk

promptly.

(c) A person appearing or practicing before the Board in a

representative capacity may be required to file a power of

attorney with the Board showing his authority to act in that

capacity.

(d) An attorney who wishes to withdraw an appearance shall

file with the Office of the Clerk a written notice of

withdrawal. The notice shall be served on the participants.

(e) Subsections (a) and (d) supersede 1 Pa. Code § 31.24

(relating to notice of appearance).

§ 499.5. Form of notice of appearance.

(a) The form of notice of appearance is as follows:

COMMONWEALTH OF PENNSYLVANIA

522

BEFORE THE PENNSYLVANIA GAMING CONTROL BOARD

In the Matter of:

[File, Docket or other identifying No.:]

NOTICE OF APPEARANCE

Please enter my appearance in the above-

designated matter on behalf of ____________.

I am authorized to accept service on behalf of

said participant in this matter.

[CHECK ONE]

[ ] On the basis of this notice, I request a

copy of each document hereafter issued by the Board in

this matter.

[ ] I am already receiving or have access to a

copy of each document issued by the Board in this

matter and do not on the basis of this notice require

an additional copy.

_________________________ Signature

_________________________ Attorney Identification Number

_________________________ Name (Printed)

_________________________ P.O. address

_________________________ City, state and zip code

_________________________ Telephone Number

(including area code)

523


to form of notice of appearance).

§ 499.6. Contemptuous conduct.

(a) Contemptuous conduct at a hearing before the Board

shall be grounds for exclusion from the hearing and for summary

suspension without a hearing for the duration of the hearing.

(b) Subsection (a) is identical to 1 Pa. Code § 31.27

(relating to contemptuous conduct).

§ 499.7. Suspension and disbarment.

(a) The Board may deny, temporarily or permanently, the

privilege of appearing or practicing before it to a person who

is found by the Board, after notice and opportunity for hearing

in the matter, to have done one or more of the following:

(1) Lacked the requisite qualifications to represent

others.

(2) Engaged in unethical, contemptuous or improper

conduct before the Board.

(3) Repeatedly failed to follow Board directives.

(b) For the purpose of subsection (a), practicing before

the Board shall include:

(1) Transacting business with the Board.

(2) The preparation of a statement, opinion or other

paper by an attorney, accountant, engineer or other expert,

524

filed with the Board in a pleading or other document with the

consent of the attorney, accountant, engineer or other expert.

(3) Appearances at a hearing before the Board.

(c) Subsections (a) and (b) are identical to 1 Pa. Code §

31.28 (relating to suspension and disbarment).

SUBPART I. COMPULSIVE AND PROBLEM GAMBLING

CHAPTER 501. COMPULSIVE AND PROBLEM GAMBLING REQUIREMENTS


The following term, when used in this chapter, has the

following meaning, unless the context clearly indicates

otherwise:

Qualified treatment professional –

(i) A person who by reason of training, education,

profession or vocation has specialized knowledge, skills or

experience in compulsive and problem gambling treatment or

addiction therapy, who has the expertise to determine an

individual’s suitability for one or more forms of compulsive and

problem gambling treatment and to recommend an appropriate

compulsive and problem gambling treatment plan, or to serve as

an independent monitor of the plan, or both.

(ii) For the purpose of this section, the term includes

gamblers anonymous programs and any similar treatment or

addiction therapy programs designed to prevent, treat, or

525

monitor compulsive and problem gamblers and to counsel family

members.

§ 501.2. Compulsive and problem gambling plan.

(a) An applicant for a slot machine licensee shall submit

a compulsive and problem gambling plan to the Board for review

and approval at the time of submission of the application. The

plan must, at a minimum, contain the elements listed in

subsection (c) and §§ 501.3, 501.6 and 503.3(d), (f), (g), (h)

and (i). A slot machine licensee may not commence operations

until the Board approves the plan.

(b) Compliance with the plan approved under this chapter

will be a condition of license renewal.

(c) A compulsive and problem gambling plan shall include

the following:

(1) The goals of the plan and procedure and

timetables to implement the plan.

(2) The identification of the individual who will be

responsible for the implementation and maintenance of the plan.

(3) Policies and procedures including the following:

(i) The commitment of the licensee to train

appropriate employees.

Source: The provisions of this § 501.1 amended April 21, 2007, effective March 27, 2007, 37 Pa.B.__.

526

(ii) The duties and responsibilities of the key

employees and gaming employees designated to implement or

participate in the plan.

(iii) The responsibility of patrons with respect

to responsible gambling.

(iv) Procedures to identify patrons and employees

with suspected or known compulsive and problem gambling

behavior.

(v) Procedures for referral of individuals self

excluded from gaming activities under section 1516 of the act

(relating to list of persons self excluded from gaming

activities) and Chapter 503 (relating to self-exclusion) to

qualified treatment professionals, including mental health,

behavioral health and other professions and to community

compulsive gambling organizations.

(vi) Procedures for referral of suspected or

known compulsive and problem gamblers to qualified treatment

professionals. The provisions of this subsection do not create

a duty for licensed facilities or its employees to refer

compulsive and problem gamblers to qualified treatment

professionals.

(4) The provision of printed material to educate

patrons about compulsive and problem gambling and to inform them

about treatment services available to compulsive and problem

527

gamblers and their families. The slot machine licensee shall

provide examples of the materials to be used as part of its

plan, including signs, brochures and other printed material and

a description of how the material will be disseminated.

(5) An employee training program, including training

materials to be utilized and a plan for periodic reinforcement

training.

(6) A certification process established by the slot

machine licensee to verify that each employee has completed the

training required by the plan.

(7) An estimation of the cost of development,

implementation and administration of the plan.

(8) A list of the qualified treatment professionals

and community organizations to which compulsive and problem

gamblers will be referred.

(9) Procedures to prevent underage gambling.

(10) Procedures to prevent intoxicated patrons from

gambling.

(11) The details of the program, if the plan includes

an outreach program.

(12) The plan for posting Board-approved signs,

required under § 501.6 (relating to signage requirements) within

the licensed facility, containing gambling treatment referral

information.

528

(13) Other policies and procedures to encourage

responsible gambling.

(d) The Board may provide the plan submitted by the slot

machine licensee to the Department of Health for evaluation.

The Department of Health may provide comments and

recommendations to the Board relating to the plan.

(e) A slot machine licensee shall submit amendments to the

compulsive and problem gambling plan to the Board for review and

approval prior to the implementation of the amendments.

§ 501.3. Employee training program.

(a) The employee training program required under §

501.2(c)(5) (relating to compulsive and problem gaming plan)

must include instruction in the following:

(1) Characteristics and symptoms of compulsive

behavior, including compulsive and problem gambling.

(2) The relationship of compulsive and problem

gambling to other addictive behavior.

(3) The social and economic consequences of

compulsive and problem gambling, including debt, treatment

costs, suicide, criminal behavior, unemployment and family

counseling.

Source: The provisions of this § 501.2 amended April 21, 2007, effective March 27, 2007, 37 Pa.B.__.

529

(4) Techniques to be used when compulsive and problem

gambling is suspected or identified.

(5) Techniques to be used to discuss compulsive and

problem gambling with patrons and to refer and advise patrons

regarding community, public and private treatment services.

(6) Procedures designed to prevent serving alcohol to

visibly intoxicated gaming patrons.

(7) Procedures designed to prevent persons from

gaming after having been determined to be visibly intoxicated.

(8) Procedures for the dissemination of written

materials to patrons explaining the self-exclusion program.

(9) Procedures for removing a person on the self-

exclusion list from a licensed facility including, if necessary,

procedures that include obtaining the assistance of appropriate

law enforcement personnel.

(10) Procedures for preventing a person identified on

the self-exclusion list from receiving any advertisement,

promotion, or other target mailing after 90 days of receiving

notice from the Board that the person has been placed on the

self-exclusion list.

(11) Procedures to prevent a person on the self-

exclusion list from having access to or from receiving

complimentary services, or other like benefits.

530

(12) Procedures to prevent a person on the self-

exclusion list from cashing checks.

(b) Training for employees shall be conducted by qualified

treatment professionals or a person with specialized knowledge,

skill, training or experience in responsible gaming employee

training programs within timetables approved by the Board for

the completion of training.

(c) Employees designated to receive training shall be

certified by the slot machine licensee under § 501.2(c)(6) upon

completion of the training.

(d) Employees who are required to receive training under

the plan shall receive periodic reinforcement training, which

shall be reported in a manner prescribed by the Board.

(e) Employees shall report suspected or identified

compulsive or problem gamblers to a designated key employee or

other supervisory employee. The employee who makes a report

under this subsection shall be immune from liability under

section 501.5 (relating to liability).

(f) The identity of an individual suspected of known

compulsive or problem gambling shall be confidential except as

provided under § 503.3(f) (relating to self-exclusion list) and

section 1516(d) of the act (relating to list of persons self-

excluded from gaming activities).

531

(g) Slot machine licensees may collaborate with qualified

treatment professionals or a person with specialized knowledge,

skill, training or experience in responsible gaming employee

training programs to develop an in-house or Internet based

employee training program to provide the training and

reinforcement training required by this chapter. The use of the

Internet based program must be approved by the Board prior to

the use of the program to meet the requirements of this chapter.

§ 501.4. Reports.

A slot machine licensee shall submit an annual summary of

its compulsive and problem gambling program with its application

for renewal of the slot machine license.

§ 501.5. Liability.

A slot machine licensee or an employee thereof will not be

liable for damages in a civil action which is based on the

following:

(1) Failure to include any of the requirements of

this chapter in its compulsive and problem gambling plan under

this chapter.

(2) Compliance or noncompliance with this section or

a plan adopted under this chapter.

Source: The provisions of this §§ 501.3 – 501.5 amended April 21, 2007, effective March 27, 2007, 37 Pa.B.__.

532

(3) An action or failure to take action pursuant to

this chapter or a plan adopted under this chapter.

(4) Failure to withhold gambling privileges from an

individual.

(5) Permitting an individual to gamble.

§ 501.6. Signage requirements.

(a) Under section 1509(c) of the act (relating to

compulsive and problem gambling program), each slot machine

licensee shall post signs that include a statement that is

similar to the following: “If you or someone you know has a

gambling problem, help is available. Call (toll-free telephone

number).” The complete text of the sign shall be determined by

the Board. The signs shall be prominently posted at the

following locations:

(1) Within 50 feet of each entrance and exit of the

facility.

(2) Within 50 feet of each ATM, cash dispensing or

change machine in each facility.

(b) Each slot machine, manufacturer and junket licensee

shall print a legible statement related to obtaining compulsive

or problem gambling assistance, the text of which shall be

determined by the Board, on all marketing or advertising

materials that are offered to the general public by a slot

533

machine, manufacturer or junket licensee, including signs,

billboards, print, radio or television advertisements.

§ 501.7. Prohibition on check cashing.

(a) Except as otherwise permitted in subsection (b),

holders of a license, certification or registration from the

Board or persons acting on behalf of a holder of a license,

certification or registration from the Board, may not cash a

check payable to an individual, including Social Security,

unemployment insurance, disability payment, public assistance

payment, or payroll check from any person to enable the

individual to take part in gaming.

(b) A holder of a license, certification or registration

from the Board or any employee authorized by a holder of a

license, certification or registration from the Board may accept

a personal check, wire transfer or cash equivalent, such as a

recognized traveler’s check, cashier’s check or money order.

CHAPTER 503. SELF EXCLUSION





Source: The provisions of this §§ 501.6 and 501.7 amended April 21, 2007, effective March 27, 2007, 37 Pa.B.__.

534

Fully executed gaming transaction – An activity involving a

slot machine or associated equipment which occurs on the gaming

floor of a licensed facility and which results in an individual

obtaining any money or thing of value from, or being owed any

money or thing of value by, a slot machine licensee, slot system

operator or agent thereof.

Self-excluded person - A person whose name is included, at

the person’s own request, on the self-exclusion list maintained

by the Board.

Self-exclusion list - A list of names of persons who, under

this chapter, have voluntarily agreed to be excluded from the

gaming floor and all gaming activities at a licensed facility

and to be prohibited from collecting any winnings, recovering

any losses or accepting complimentary gifts or services or any

other thing of value at all licensed facility.

Winnings – Any money or thing of value received from, or

being owed by a slot machine licensee, slot system operator or

agent thereof as a result of a fully executed gaming

transaction.

§ 503.2. (RESERVED)

§ 503.3. Request for self exclusion.

Source: The provisions of this § 503.1 amended December 23, 2006, effective December 4, 2006, 36 Pa.B. 7863; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. __.

535

(a) A person may have the person’s name placed on the self-

exclusion list by submitting a request for self exclusion in the

form and manner required by the Board.

(b) A person requesting placement on the self-exclusion

list shall submit, in person, a completed request for self

exclusion to the Board. The Board will designate locations for

submission of completed requests for self exclusion in

accordance with this chapter.

(c) A request for self exclusion must include the following

identifying information:

(1) Name, including any aliases or nicknames.

(2) Date of birth.

(3) Address of current residence.

(4) Telephone number of current residence.

(5) Social Security number, when voluntarily provided

in accordance with section 7 of the Privacy Act of 1974 (5

U.S.C. § 552a).

(6) Physical description of the person, including

height, weight, gender, hair color, eye color and any other

physical characteristic that may assist in the identification of

the person.

536

(7) Government-issued photo identification such as

driver’s license or passport.

(d) The information provided in subsection (c) shall be

updated by the self-excluded person within 30 days of a change.

(e) The length of self exclusion requested by the person

may be one of the following:

(1) One year (12 months).

(2) Five years.

(3) Lifetime.

(f) A request for self exclusion must include a signed

release which:

(1) Acknowledges that the request for self exclusion

has been made voluntarily.

(2) Certifies that the information provided in the

request for self exclusion is true and accurate.

(3) Acknowledges that the individual requesting self

exclusion is a problem gambler.

(4) Acknowledges that if the individual is found on

the gaming floor or engaging in gaming activities at any

licensed facility, that the individual will be subject to

removal and may be subject to arrest for criminal trespass under

18 Pa.C.S. § 3503 (relating to criminal trespass).

(5) Releases, indemnifies, holds harmless

537

and forever discharges the Commonwealth, the Board, and all slot

machine licensees from any claims, damages, losses, expenses or

liability arising out of, by reason of or relating to the self-

excluded person or to any other party for any harm, monetary or

otherwise, which may arise as a result of one or more of the

following:

(i) The failure of a slot machine licensee to

withhold gaming privileges from or restore gaming privileges to

a self-excluded person.

(ii) Otherwise permitting or not permitting a

self-excluded person to engage in gaming activity in a licensed

facility while on the list of self-excluded persons.

(iii) Disclosure by a slot machine licensee of

information regarding a self-excluded person to any person or

group who is not affiliated with the slot machine licensee.

(iv) Disclosure of information regarding a self-

excluded person by the Board.

(g) Self exclusions for 1 or 5 years remain in effect until

the self-excluded person requests removal from the Board’s self-

exclusion list under § 503.6 (relating to removal from self-

exclusion list).

(h) A person submitting a self-exclusion request shall be

required to present a government-issued photo identification

538

containing the person’s signature and photograph when the person

submits the request.

(i) A person requesting self exclusion under this chapter

shall be required to have a photograph taken by the Board, or

agent thereof, upon the Board’s acceptance of the request to be

on the list.

§ 503.4. Self-exclusion list.

(a) The Board will maintain the official self-exclusion

list and notify each slot machine licensee of any additions to

or deletions from the list by first class mail or by

transmitting a notice by electronic means directly to each slot

machine licensee.

(b) The notice provided to slot machine licenses by the

Board will include the following information concerning a person

who has been added to the self-exclusion list:

(1) Name, including any aliases or nicknames.

(2) Date of birth.

(3) Address of current residence.

(4) Telephone number of current residence.

(5) Social Security number, where voluntarily

provided by the person requesting self exclusion pursuant to

section 7 of the Privacy Act of 1974 (5 U.S.C. § 552a).

539

(6) Physical description of the person, including

height, weight, gender, hair color, eye color and any other

physical characteristic that may assist in the identification of

the person.

(7) A copy of the photograph taken by the Board under

§ 503.3(i) (relating to request for self exclusion).

(c) The notice provided to slot machine licensees by the

Board concerning a person whose name has been removed from the

self-exclusion list will include the name and date of birth of

the person.

(d) A slot machine licensee shall maintain a copy of the

self-exclusion list and establish procedures to ensure that the

copy of the self-exclusion list is updated and that all

appropriate employees and agents of the slot machine licensee

are notified of any addition to or deletion from the list within

5 business days after the day notice is mailed to each slot

machine licensee or transmitted electronically pursuant to

subsection (a).

(e) Information furnished to or obtained by the Board

under this chapter will be deemed confidential and will not be

disclosed except in accordance with this chapter.

(f) Slot machine licensees, employees or agents thereof

may not disclose the name of, or any information about, a person

540

who has requested self exclusion to anyone other than employees

and agents of the slot machine licensee whose duties and

functions require access to information. Notwithstanding the

foregoing, a slot machine licensee may disclose the identity of

a self-excluded person to appropriate employees of other slot

machine licensees in this Commonwealth or affiliated gaming

entities in other jurisdictions from disclosing the identity of

persons self excluded to other affiliated gaming entities in

this Commonwealth or other jurisdictions for the limited purpose

of assisting in the proper administration of responsible gaming

programs operated by affiliated licensed gaming entities.

(g) A self-excluded person may not collect in any manner

or in any proceeding any winnings or recover any losses arising

as a result of any gaming activity for the entire period of time

that the person is on the Board’s self-exclusion list.

(h) Any winnings incurred by a self-excluded person shall

be remitted to the Board and deposited into the Compulsive and

Problem Gambling Treatment Fund.

(i) For the purposes of this section, any winnings issued

to, found on or about, or redeemed by a self-excluded person

shall be presumed to constitute winnings subject to remittance

to the Board. The forfeited winnings shall be remitted to the

Board no sooner than 30 days after the winnings are confiscated.

541

§ 503.5. Duties of slot machine licensees.

(a) A slot machine licensee shall train its employees and

establish procedures that are designed to:

(1) Identify a self-excluded person when present in a

licensed facility and, upon such identification, notify the

following persons:

(i) Employees of the slot machine licensee whose

duties include the identification and removal of self-excluded

persons.

(ii) Designated representatives of the Board.

(2) Notify the Pennsylvania State Police when a self-

excluded person is found on the gaming floor or engaging in

gaming activities.

(3) Refuse wagers from and deny gaming privileges to

a self-excluded person.

(4) Deny check cashing privileges, player club

membership, complimentary goods and services, junket

participation and other similar privileges and benefits to any

self-excluded person.

(5) Ensure that self-excluded persons do not receive,

either from the slot machine licensee or any agent thereof,

Source: The provisions of this § 503.4 amended December 23, 2006, effective December 4, 2006, 36 Pa.B. 7863; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. __.

542

junket solicitations, targeted mailings, telemarketing

promotions, player club materials or other promotional materials

relating to gaming activities at its licensed facility.

(6) Comply with the provisions of § 503.4(d)

(relating to self-exclusion list).

(7) Disseminate written materials to patrons

explaining the self-exclusion program.

(b) A slot machine licensee shall submit a copy of its

procedures and training materials established under subsection

(a) to the Board 30 days prior to initiation of gaming

activities at the licensed facility. Amendments to these

procedures shall be submitted to the Board at least 10 business

days prior to their implementation. If the Board does not

object to the procedures or amendments thereto, the procedures

or amendments shall be deemed to be approved.

(c) A slot machine licensee shall post signs at all

entrances to a licensed facility indicating that a person who is

on the self-exclusion list may be subject to arrest for

trespassing under 18 Pa.C.S. § 3503 if the person is on the

gaming floor or engaging in gaming activities.

(d) The list of self-excluded persons is confidential, and

any distribution of the list to an unauthorized source

543

constitutes a violation of the act and subjects the disclosing

party to sanctions as the Board deems appropriate.

(e) Under section 1516 of the act (relating to list of

persons self excluded from gaming activities), slot machine

licensees and employees thereof may not be liable for damages in

any civil action, which is based on the following:

(1) Failure to withhold gaming privileges from or

restore gaming privileges to a self-excluded person.

(2) Permitting or not permitting a self-excluded

person to gamble.

(3) Good faith disclosure of the identity of a self-

excluded person to someone other than those authorized by this

chapter, for the purpose of complying with this chapter.

(f) A slot machine licensee shall report the discovery of a

self-excluded person on the gaming floor or engaging in gaming

activities to the Board within 3 days in a form and manner


§ 503.6. Removal from self-exclusion list.

(a) A self-excluded person may, upon the expiration of the

period of self exclusion, request removal of the person’s name

from the self-exclusion list by submitting a completed request

for removal as required by subsections (b) and (c).

544

(b) A request for removal from the self-exclusion list

must be in a form prescribed by the Board. The form must

include:

(1) The identifying information specified in § 503.3

(c)(1) - (7) (relating to request for self-exclusion).

(2) The signature of the person requesting removal

from the self-exclusion list indicating acknowledgment of the

following statement:

"I certify that the information that I have

provided above is true and accurate. I am aware that my

signature below constitutes a revocation of my previous request

for self exclusion, and I authorize the Board to permit all slot

machine licensees of the Commonwealth of Pennsylvania to

reinstate my gaming privileges at licensed slot facilities."

(c) The request shall be submitted to a location designated

by the Board. A person submitting a request for removal from

the self-exclusion list shall be required to present a valid

government-issued photo identification containing the person’s

signature when the request is submitted. No sooner than 5

business days after the request is submitted, the person

submitting the request:

(1) Shall return to the Board office where the

request was filed.

545

(2) Present a valid government-issued photo

identification containing the person’s signature.

(3) Sign the request a second time.

(d) Within 5 business days after the request is signed for

a second time, the Board will delete the name of the person

requesting removal from the self-exclusion list and notify each

slot machine licensee of the removal.

§ 503.7. Exceptions to the prohibition from being on the gaming floor for individuals on the self-exclusion list.

The prohibition against allowing self-excluded persons to

be on the gaming floor does not apply to an individual who is on

the self-exclusion list if all of the following apply:

(1) The individual is carrying out the duties of employment

or incidental activities related to employment.

(2) The slot machine licensee’s security department and the

Board’s office located at the licensed facility have received

prior notice.

(3) Access to the gaming floor is limited to the time

necessary to complete the individual’s assigned duties.

(4) The individual does not otherwise engage in any gaming

activities.

Source: The provisions of this § 503.5 amended December 23, 2006, effective December 4, 2006, 36 Pa.B. 7863. Source: The provisions of this § 503.6 amended December 23, 2006, effective December 4, 2006, 36 Pa.B. 7863.

546

CHAPTER 511. PERSONS REQUIRED TO BE EXCLUDED





Career or professional offender - Any person, who for the

purpose of economic gain, engages in activities that are deemed

criminal violations under 18 Pa.C.S. (relating to crimes and

offenses) or equivalent criminal violations in other

jurisdictions, or engages in unlawful activities contained in

section 1518(a) of the act (relating to prohibited acts;

penalties).

Cheat -

(i) To alter, without authorization, the elements of

chance, method of selection or criteria which determine:

(A) The result of a slot machine game.

(B) The amount or frequency of payment in a slot

machine game.

(C) The value of a wagering instrument.

(D) The value of a wagering credit.

(ii) The term does not include altering for required

maintenance and repair.

Source: The provisions of this § 503.7 amended December 23, 2006, effective December 4, 2006, 36 Pa.B. 7863.

547

(iii) The term includes an act or acts in any

jurisdiction that would constitute any offense under section

1518(a)(6) and (a)(7) of the act (relating to prohibited acts

and penalties).

Excluded person - A person who has been placed upon the

exclusion list and who is required to be excluded or ejected

from a licensed gaming facility.

Exclusion list - A list of names of persons who are

required to be excluded or ejected from a licensed facility.

§ 511.2. Maintenance and distribution of the exclusion list.

(a) The Board will maintain a list of persons to be

excluded or ejected from a licensed facility.

(b) The exclusion list will be open to public inspection

at the Board’s central office during normal business hours and

will be distributed to every slot machine licensee within this

Commonwealth, who shall acknowledge receipt thereof in writing

or electronically.

(c) The following information will be provided to the slot

machine licensees for each excluded person on the exclusion

list:

Source: The provisions of §§ 511.1 and 511.2 amended March 24, 2007, effective February 27, 2007, 37 Pa.B. 1314.

548

(1) The full name and all aliases the person is

believed to have used.

(2) A description of the person’s physical appearance,

including height, weight, type of build, color of hair and eyes

and any other physical characteristics which may assist in the

identification of the person.

(3) The person’s date of birth.

(4) The date the person was added to the list.

(5) A recent photograph, if available.

(6) The last known address of record.

(7) Other identifying information available to the

Board.

§ 511.3. Criteria for exclusion.

(a) The exclusion list may include any person who meets

one or more of the following criteria:

(1) A career or professional offender whose presence

in a licensed facility would, in the opinion of the Board, be

inimical to the interest of the Commonwealth or a slot machine

licensee, or both.

(2) An associate of a career or professional offender

whose presence in a licensed facility would be inimical to the

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interest of the Commonwealth or a slot machine licensee, or

both.

(3) Any person who has been convicted of a criminal

offense under the laws of any State, or of the United States,

which is punishable by more than 1 year in prison, or who has

been convicted of any crime or offense involving moral

turpitude, and whose presence in a licensed facility would be

inimical to the interest of the Commonwealth or a slot machine

licensee, or both.

(4) Any person whose presence in a licensed facility

would be inimical to the interest of the Commonwealth or

licensed gaming therein, including:

(i) Cheats.

(ii) Persons whose gaming privileges have been

suspended by the Board.

(iii) Persons whose permits, licenses or other

approvals have been revoked.

(iv) Persons who pose a threat to the safety of

the patrons or employees of a slot machine licensee.

(v) Persons with a history of conduct involving

the disruption of the gaming operations of slot machine

licensees.

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(vi) Persons subject to an order of a court of

competent jurisdiction in the Commonwealth excluding those

persons from licensed facilities.

(vii) Persons with pending charges or

indictments for a gaming or gambling crime or a crime related to

the integrity of gaming operations in this Commonwealth or

another jurisdiction.

(viii) Persons who have been convicted of a

gaming or gambling crime or crime related to the integrity of

gaming operations in this Commonwealth or another jurisdiction.

(ix) Persons who have performed an act or have a

notorious or unsavory reputation that would adversely affect

public confidence and trust in gaming, including, being

identified with criminal activities in published reports of

various Federal and state legislative and executive bodies that

have inquired into criminal or organized criminal activities.

(b) For purposes of subsection (a), a person's presence

may be considered "inimical to the interest of the Commonwealth

or of licensed gaming therein" if known attributes of the

person's character and background meet one or more of the

following criteria:

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(1) Are incompatible with the maintenance of public

confidence and trust in the credibility, integrity and stability

of the operation of a licensed facility.

(2) May reasonably be expected to impair the public

perception of, and confidence in, the strict regulatory process

created by the act.

(3) Create or enhance a risk of the fact or

appearance of unsuitable, unfair or illegal practices, methods

or activities in the conduct of gaming or in the business or

financial arrangements incidental thereto.

(c) A finding of inimicality may be based upon the

following:

(1) The nature and notoriety of the character or

background of the person.

(2) The history and nature of the involvement of the

person with licensed gaming in the Commonwealth or another

jurisdiction, or with a particular slot machine licensee or

licensees or an affiliate, intermediary, subsidiary or holding

company thereof.

(3) The nature and frequency of contacts or

associations of the person with a slot machine licensee or

licensees, or with employees or agents thereof.

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(4) Other factors reasonably related to the

maintenance of public confidence in the efficacy of the

regulatory process and the integrity of gaming operations, the

gaming industry and its employees.

(d) A person’s race, color, creed, national origin or

ancestry, or sex will not be a reason for placing the name of a

person upon the exclusion list.

§ 511.4. Duties of the Bureau.

(a) The Bureau will, on its own initiative, or upon

referral by a law enforcement agency or a slot machine licensee,

investigate a person to determine whether the person meets the

criteria for exclusion provided in section 1514 of the act

(relating to regulation requiring exclusion of certain persons)

and § 511.3 (relating to criteria for exclusions).

(b) If, upon completion of an investigation, the Bureau

determines that an individual should be placed on the exclusion

list, the Bureau will file a petition for exclusion with the

Board, identifying the candidate and setting forth a factual

basis for the petition. The petition shall include information

demonstrating that the individual satisfies the criteria for

exclusion set forth under section 1514 or 1515 of the act


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(relating to repeat offenders excludable from licensed gaming

facility) or this chapter.

(c) When the Bureau files a complaint alleging a violation

of section 1514(e) of the act and § 511.9(b)(2) (relating to

duties of slot machine licensees) against a slot machine

licensee, the Bureau will file simultaneously a petition to

exclude the person alleged in the complaint to meet the criteria

for exclusion set forth under § 511.3.

§ 511.5. Placement on the exclusion list.

(a) A person may be placed on the exclusion list:

(1) Upon the filing of a petition by the Bureau in

accordance with the procedures under § 511.4 (relating to duties

of the Bureau).

(2) Upon receipt of an order from a court of

competent jurisdiction within this Commonwealth, excluding the

person from licensed facilities.

(b) The placement of a person on the exclusion list shall

have the effect of requiring the exclusion or ejection of the

excluded person from licensed facilities.

(c) An excluded person may not collect in any manner or in

any proceeding any winnings or recover any losses arising as a


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result of any gaming activity for the entire period of time that

the person is on the Board’s exclusion list.

(d) Any winnings incurred by an excluded person shall be

remitted to the Board to support compulsive and problem gambling

programs.

(e) For the purposes of this section, any winnings issued

to, found on or about, or redeemed by an excluded person shall

be presumed to constitute winnings subject to remittance to the

Board.

§ 511.6. Demand for hearing on the placement of a person on the

exclusion list.

(a) Upon placement of a person on the exclusion list, the

Clerk will serve notice of the placement to the person by

personal service or certified mail at the last known address of

the person. When the placement is a result of a petition for

exclusion filed by the Bureau, a copy of the petition will be

included with the notice.

(b) Upon service of the notice by the Clerk, an excluded

person shall have 30 days to demand a hearing before the Board.

Failure to demand a hearing within 30 days after service shall


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be deemed an admission of all matters and facts alleged in the

Bureau’s petition for exclusion.

(c) If a hearing is demanded by the excluded person, a

hearing will be scheduled as provided in § 492.6 (relating to

hearings generally). At the hearing, the Bureau will have the

affirmative obligation to demonstrate that the excluded person

satisfies the criteria for exclusion in section 1514 or 1515 of

the act (relating to regulation requiring exclusion of certain

persons; and repeat offenders excludable from licensed gaming

facility) or § 511.3 (relating to criteria for exclusion).

Unless the matter is heard directly by the Board, the presiding

officer will prepare a recommendation as provided in § 494.4

(relating to report or recommendation of the presiding officer)

for consideration by the Board.

(d) An excluded person may not collect in any manner or in

any proceeding any winnings or recover any losses arising as a

result of any gaming activity for the entire period of time that

a person is on the Board’s exclusion list.

(e) Any winnings incurred by an excluded person shall be

remitted to the Board.

(f) For the purposes of this section, any winnings issued

to, found on or about, or redeemed by an excluded person shall


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be presumed to constitute winnings subject to remittance to the

Board. The forfeited winnings shall be remitted to the Board no

sooner than 30 days after the winnings are confiscated.

§ 511.7. Board review.

After a hearing or consideration of a petition for

exclusion filed by the Bureau when no hearing was requested, the

Board will:

(1) Issue a final order affirming the placement of the

person on the exclusion list.

(2) Issue a final order removing the person from the

exclusion list.

(3) Refer the matter to the presiding officer for further

hearing.

§ 511.8. (Reserved).

§ 511.9. Duties of slot machine licensees.

(a) A slot machine licensee shall have the responsibility

to distribute copies of the exclusion list to its employees.

Additions, deletions or other updates to the list shall be

Source: The provisions of this § 511.6 amended March 24, 2007, effective February 27, 2007, 37 Pa.B. 1314; amended April 21, 2007, effective March 27, 2007, 37 Pa.B. __. Source: The provisions of §§ 511.7 and 511.8 amended March 24, 2007, effective February 27, 2007, 37 Pa.B. 1314.

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distributed by a slot machine licensee to its employees within 2

business days of the slot machine licensee’s receipt of the

updates from the Board.

(b) A slot machine licensee shall exclude or eject the

following persons from its licensed facility:

(1) An excluded person.

(2) A person known to the slot machine licensee to

satisfy the criteria for exclusion set forth in section 1514 of

the act (relating to regulation requiring exclusion of certain

persons) and § 511.3 (relating to criteria for exclusion).

(c) If an excluded person enters, attempts to enter, or is

in a licensed facility and is recognized by employees of the

slot machine licensee, the slot machine licensee shall

immediately notify the Bureau of the fact in accordance with the

procedures set forth by the Board.

(d) It shall be the continuing duty of a slot machine

licensee to inform the Bureau, in writing, of the names of

persons the slot machine licensee believes are appropriate for

placement on the exclusion list and the reason for placement on

the exclusion list.

(e) A slot machine licensee or employees thereof will not

be liable to any person for damages in a civil action, which is

based on the following:

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(1) Withholding winnings from an excluded person.

(2) Permitting an excluded person to gamble.

(3) Excluding an excluded person from the licensed

gaming facility.

§ 511.10. Petition to remove name from exclusion list.

(a) An excluded person may file a petition with the Clerk

to request a hearing for removal of his name from the exclusion

list at any time after 5 years from the placement of his name on

the exclusion list.

(b) The petition must be signed by the excluded person,

contain supporting affidavits, and state the specific grounds

believed by the petitioner to constitute good cause for removal

from the exclusion list. Upon receipt of the petition, the

Bureau may file an answer in accordance with § 493.5 (relating

to answers).

(c) The Board may decide the petition on the basis of the

documents submitted by the excluded person and the Bureau. The

Board may summarily deny the petition, may grant the petition,

or direct that a hearing be held in accordance with § 511.6

(relating to demand for hearing on the placement of a person on

the exclusion list). The Board will grant the petition or


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direct that a hearing be held only upon a finding that there is

new evidence, which is material and necessary, or that

circumstances have changed since the placement of the excluded

person on the exclusion list, and that there would be a

reasonable likelihood that the Board would alter its previous

decision.

(d) An excluded person who is barred from requesting a

hearing concerning his removal from the exclusion list by the 5-

year period of exclusion in subsection (a) may petition the

Board for early consideration at any time. However, an excluded

person may not, within the 5-year period of exclusion, file more

than one petition for early consideration.

(e) A petition for early consideration must contain the

information required by subsection (b). Upon receipt of the

petition, the Bureau may file an answer in accordance with §

493.5 (relating to answers).

(f) The Board may decide the petition for early

consideration on the basis of the documents submitted by the

excluded person and the Bureau. The Board may summarily deny

the petition or may grant the petition and direct that a hearing

be held in accordance with § 511.6.

(g) The Board will consider the following criteria when

making its decision on a petition for early consideration.

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(1) Whether there are extraordinary facts and

circumstances warranting early consideration of the excluded

person’s request for removal from the exclusion list.

(2) If exclusion was ordered under § 511.5(a)(2)

(relating to placement on the exclusion list), whether the

excluded person has completed the period of probation or

otherwise satisfied the terms of the court-ordered exclusion.

SUBPART J. EXCLUSION.

CHAPTER 513. UNDERAGE GAMING § 513.1. Definitions.

(a) The following words and phrases, when used in this

chapter, have the following meanings, unless the context clearly


Fully executed gaming transaction – Any activity involving

a slot machine or associated equipment which occurs on the

gaming floor of a licensed gaming facility and which results in

an individual obtaining any money or thing of value from, or

being owed any money or thing of value by, a slot machine

licensee.

Winnings – Any money or thing of value received from, or

being owed by a slot machine licensee as a result of a fully

executed gaming transaction.


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§ 513.2. Exclusion requirements.

(a) An individual under 18 years of age may not enter or

be on the gaming floor of a licensed facility.

(b) An individual under 21 years of age, whether

personally or through an agent, may not operate, use, play or

place a wager on, a slot machine in a licensed facility.

(c) An individual under 21 years of age may not be rated

as a player or receive any complimentary service, item or

discount as a result of, or in anticipation of gaming activity.

(d) An individual under 21 years of age may not collect in

any manner or in any proceeding, whether personally or through

an agent, any winnings or recover any losses arising as a result

of any gaming activity.

(e) Winnings incurred by an individual under 21 years of

age shall be remitted to the Board.

(f) For the purposes of this section, winnings issued to,

found on or about or redeemed by an individual under 21 years of

age shall be presumed to constitute winnings and thus be subject

to remittance to the Board. The forfeited winnings shall be

remitted to the Board no sooner than 30 days after the winnings

are confiscated.

Source: The provisions of this § 513.2 amended April 21, 2007, effective March 27, 2007, 37 Pa.B. __.

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§ 513.3. Responsibilities of licensees, permittees, registrants

and certification holders.

(a) A person holding a license, permit, registration or

certification issued by the Board is prohibited from permitting

or enabling an individual to engage in conduct that violates §

513.2(a), (b), (c) or (d) (relating to exclusion requirements).

(b) A slot machine licensee may be subject to Board

imposed administrative sanctions if a person engages in conduct

that violates § 513.2(a), (b), (c) or (d) at its licensed

facility. Under § 513.2(e), any winnings obtained by a slot

machine licensee from or held on account of a person under 21

years of age shall be remitted to the Board and deposited into

the Compulsive and Problem Gambling Treatment Fund.

(c) A person holding a license, permit, registration or

certificate issued by the Board who violates a provision of this

chapter may be held jointly or severally liable for the

violation.

(d) Slot machine licensees shall establish procedures that

are designed to prevent violations of this chapter. Each slot

machine licensee shall submit to the Board a copy of its

procedures 30 days prior to initiation of gaming activities at

their licensed facility. The licensee may not commence

operations until the Board approves its procedures. Any

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amendments to these procedures must receive approval of the

Board prior to their implementation.


In any prosecution or other proceeding against a person for

a violation of this chapter, it shall be no defense that the

person believed an individual to be 21 years of age or older.

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